A statement was issued by the US Senate as they passed the annual National Defense Authorization Act (NDAA).
Insurance agents has hereby escape the new rules that could have subjected insurance professionals to unnecessary red tape.
However, the NDAA provision would require almost all small business with fewer than 20 employees to file new reports on its beneficial ownership with the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
According to reports, businesses would have to comply with the new requirement within two years of the NDAA’s enactment, or upon incorporation of the business.
From the new rules set, there will be penalties for those business that fail to comply with it, with civil penalties of $10,000 and criminal penalties of up to two years in prison.
But the Senate has exempted insurance agents and brokers from the new federal reporting requirement – a move that the industry has praised.