The Ownership Clarity Act amends federal banking law to allow financial institutions and their service providers that perform screening services to access beneficial ownership information about companies, but only under strict conditions and with government approval. Specifically, the bill creates a licensing system where the Director of Financial Crimes Enforcement Network can issue two-year access licenses to covered entities that demonstrate their access is necessary to protect national security and economic stability by identifying foreign criminals, terrorist financiers, and sanctioned individuals trying to use the U.S. financial system. The bill limits access to specific personnel within these institutions who can only use the information for screening and risk management purposes, and requires the Director to establish regulations governing how this sensitive ownership data is used, disclosed, and retained. The legislation targets threats including terrorist financing, money laundering, human trafficking, drug trafficking, and activities by governments designated as state sponsors of terrorism. No specific funding is authorized in the bill, as it primarily creates an administrative licensing and oversight framework for information sharing.
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