Alexandria, VA (October 5, 2022) - The Air Conditioning Contractors of America (ACCA) wrote a letter opposing the Establishing New Authorities for Business Laundering and Enabling Risks to Security (ENABLERS) Act. ACCA also joined 75 other organizations in signing an additional letter opposing the Act.
“ACCA strongly opposes the ENABLERS Act and the Financial Crimes Enforcement Network’s (FinCEN) Beneficial Ownership Rule as they both would cause serious negative impacts to ACCA members and the industry,” said Barton James, ACCA president and CEO. “We will fight tirelessly to prevent this legislation from passing in the Senate and will do all that we can to protect our members from these regulations.”
The ENABLERS Act, which passed the House as part of the 2022 National Defense Authorization Act (NDAA), would dramatically expand the Corporate Transparency Act's (CTA) reporting requirements. The goal of the bill is to increase reporting by, "professional service providers who serve as key gatekeepers to the U.S. financial system," including ACCA members. Anyone engaged in an entity's formation, acquisition, or disposal would be covered by the ENABLERS Act, as well as owners and employees engaged in nearly every financial activity of a business.
Covered individuals would be subject to audits conducted by the Treasury Department. The ENABLERS Act also requires the Treasury to recommend additional enforcement tools after a year. The related CTA imposes fines of up to $10,000 and jail time of up to two years for covered business owners and employees who fail to make the appropriate reports.
The Financial Crimes Enforcement Network (FinCEN) released the final Beneficial Ownership Rule on September 30, 2022. The rule, in accordance with the CTA, will require most corporations, limited liability companies, and other entities created in or registered to do business in the United States to report information about their beneficial owners—the persons who ultimately own or control the company, to FinCEN.
ACCA will continue to keep its members updated on the status of this bill.
For more information about ACCA, please contact Natalie D'Apolito, ACCA communications coordinator, at natalie.dapolito@acca.org or (703) 824-8873.