By closing loopholes and strengthening disclosure provisions, our bipartisan legislation delivers commonsense reforms to support our national security.
Advance transparency reforms for defense contractors so companies seeking Department of Defense contracts must disclose beneficial ownership and cannot hide behind anonymous shell companies.
Occurrences
Evidence
The enacted FY 2021 NDAA includes the Corporate Transparency Act, which requires companies to disclose their beneficial owners and was designed to curb anonymous shell companies.
Treasury said it would not impose penalties now or in the future if companies fail to register for the beneficial ownership database; the article also notes the Corporate Transparency Act was passed in 2021 and that the database was created to curb shell-company formation.
Assessments
Grassley can get partial credit because Congress enacted a beneficial-ownership transparency reform in the FY 2021 NDAA/Corporate Transparency Act era, which aligns with the claim’s anti-shell-company goal. But the enacted law was broader than defense contractors and the evidence does not show the specific DoD-contractor disclosure requirement was achieved as stated; later enforcement was also weakened, so this is not full delivery.