Sue Nester                                                                                                                                           LC-09-20

703-706-5448                                                                                                        www.independentagent.com

 

 

 

House Passes NDAA with Agent Exemption from Additional Federal Reporting Requirements

Big ‘I’ advocated to shield agents and brokers from new reporting requirements.

 

WASHINGTON, DC, December 8, 2020— The Independent Insurance Agents & Brokers of America (the Big “I") thanks the U.S. House of Representatives for exempting agents and brokers from new federal reporting requirements that were included in the National Defense Authorization Act (NDAA).

The Big ‘I’ argued to include a full exemption for agents and brokers in the House legislation by showing that insurance producers already provide beneficial ownership information to state regulators and that the additional burden of providing it to the federal government would be duplicative and unnecessary.

“The Big 'I' is grateful that the House of Representatives voted to pass a version of the NDAA which includes an exemption for insurance agents and brokers from new federal reporting requirements regarding small business beneficial ownership information," says Charles Symington, Big “I" senior vice president of external, industry and government affairs. “Throughout the legislative process, the Big ‘I’ was the only producer group that advocated on behalf of agents and brokers to ensure they would be excluded from this burdensome requirement.”

This provision within the NDAA would require nearly every small business with fewer than 20 employees to file new reports on its beneficial ownership with the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN). Businesses would have to comply with the new requirement annually starting within two years of the law's enactment for existing businesses or upon the incorporation of a new business. The penalties for failure to comply with these reporting requirements are severe, with civil penalties of up to $10,000 and criminal penalties of up to two years in prison.

“The Big 'I' would especially like to thank Rep. Carolyn Maloney (D-NY) for her tireless work on this beneficial ownership provision," says Joseph Cortina, Big “I" director of federal government affairs. “Throughout the process, Rep. Maloney worked to make significant improvements to this legislation that helped insurance agents and brokers avoid unnecessary reporting burdens while still ensuring that bad actors are prevented from using anonymous shell companies to thwart law enforcement and hide their illicit activities."

Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations united under the Trusted Choice brand. Trusted Choice independent agents offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a variety of insurance companies.

 

Sue Nester

Vice President, Communications

susan.nester@iiaba.net | (703) 706-5448 | (301) 606-1601 | www.independentagent.com