00:00The Trump administration has alleged
00:03that detecting and deterring transnational criminal
00:06organizations, such as Iranian terrorist groups
00:11and their proxies, is a priority for national security.
00:15But on March 2nd of 2025, your department
00:19announced that it would not enforce any penalties or fines
00:24associated with the BOI reporting rule,
00:27nor will it enforce the CTA against US citizens,
00:33domestic reporting companies, or their beneficial owners.
00:37So I'm a little confused of how you square those two things.
00:43So my question is, can you explain to or would you
00:46explain to the American public how you undermine
00:51the bipartisan CTA and expect law enforcement
00:55and national security agencies to quickly and effectively
01:00know the true owners behind shell companies registered
01:04in the United States now that foreigners,
01:07including a drug cartel, gang members,
01:10could register a company in the United States
01:13with no state or any federal ownership reporting
01:17requirements?
01:18And I remind you, in your testimony,
01:22you talked about illicit actors.
01:25Well, these are some of our illicit actors.
01:30The Congresswoman, an overwhelming majority
01:33of the domestic entities that you're describing
01:38are hardworking Americans with small businesses.
01:41We bifurcated the bill and any foreign entities must still file.
01:49So you saying to me it's not true that they must file
01:53and do the foreign entities must file the BOI?
01:58Yes, we bifurcated the CTA program that domestics do not have to.
02:09So so maybe I'm asking it the wrong way.
02:13So it appears that they are doing it registering
02:18to avoid the transparency of who the companies are.
02:25I'm not sure what your question is.
02:27I'd be happy to answer it.
02:29So I guess I'm looking at it as and if you're saying it is not true
02:35and that they now are complying and completing the BOI.
02:39So let's take it one step at a time.
02:41So you're saying everybody is completing the BOI.
02:45You're enforcing it.
02:46No, ma'am, I am saying that we have bifurcated it,
02:50that US nationals do not have to file,
02:54and that foreign nationals do.
02:57OK, so I guess when we look at this,
03:02if we're limiting enforcements of the rule just
03:05to the foreign entities, that creates a giant loophole
03:10whereby any foreign entity can register in the United States
03:14and evade or not do the BOI reporting requirements.
03:19Well, they would be subject to all.
03:22They would have to come through a US financial institution,
03:25so they would be subject to all US institutions.
03:28Including the BOI.
03:29The AML.
03:30Including the BOI.
03:32Including the BOI, yes or no?
03:36Because the answer is no.
03:39I mean, you can say it however you want to, but the answer is no.
03:42And this makes it easier, and this
03:44is what I want the American folks to know.
03:46It makes it easier for human and drug traffickers,
03:50cartels, terrorists, organizations, and other criminals
03:54to do business in the United States.
03:56And when you're limiting the enforcement just
03:59to foreign entities, it exempts 99% of the entities
04:04that Congress intended the law to cover when it was passed into law.
04:10So, I think I do have my answer.
04:13We're just not agreeing on it, and we know why.
04:15So, let me go to my second, let me, it's my time.
04:18Let me go to my second question.
04:19The clock is running.
04:20It's my time.
04:22It is my time.
04:23You will not do this on my time.
04:26Now, I'm going to ask for a few more seconds
04:28since he refused to comply with my time, not his time.
04:40Then it keeps doing it from me.
04:49There's nothing.
04:50It's my time.
04:55Later.
04:56Later.
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