# Understanding the ENABLERS Act

The ENABLERS Act is designed to close loopholes that criminals and money launderers have been using to hide the sources of their money. Right now, certain professionals—like art dealers, lawyers, accountants, and investment advisors—aren't required to follow the same anti-money laundering rules that banks do. This bill expands those rules to cover these "gatekeeper" professions, making it much harder for criminals to move dirty money through legitimate-looking businesses and transactions.

Here's what changes: The bill adds seven new categories of professionals to the list of "financial institutions" that must follow federal anti-money laundering safeguards. This includes investment advisors, art dealers, lawyers handling financial matters, accountants, trust and company service providers (people who help set up shell companies), public relations firms that help clients stay anonymous, and payment processing services. Starting in mid-2024, these professionals will have to report suspicious transactions to the government, establish anti-money laundering programs, verify who their clients really are, and conduct due diligence to understand the source of their clients' money. There are some exceptions—government agencies and U.S.-based lawyers using legitimate company formation services won't be covered.

The bill also requires title insurance companies to track and report who actually owns the entities buying and selling real estate. This is important because real estate has become a major way criminals launder money by buying properties through shell companies that hide the real owner's identity. Additionally, the Treasury Department must create a task force to develop a comprehensive strategy for monitoring all these professions and assign specific agencies to enforce the rules for each type of business.

The practical effect is that it becomes significantly riskier for criminals to use these professional services to hide money. If you're a legitimate business owner or investor, you'll likely face more questions about where your money comes from and who you really are, but this shouldn't affect you if your finances are legal and transparent.

ENABLERS Act

Malinowski, Tom

Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act or the ENABLERS Act This bill expands the definition of a financial institution for purposes of reporting suspicious transactions, anti-money laundering programs, and other related measures. Specifically, the bill expands this definition to include <ul> <li>persons who provide investment advice for compensation; </li> <li>persons who trade in works of art, antiques, or collectibles; </li> <li>attorneys, law firms, or notaries involved in financial or related activity on behalf of another person; </li> <li>certain trusts and company service providers; </li> <li>certified public accountants and public accounting firms; </li> <li>persons engaged in the business of public relations, marketing, communications, or other similar services in such a manner as to provide another person anonymity or deniability; and </li> <li>persons engaged in the business of providing third-party payment services. </li> </ul> Additionally, the Financial Crimes Enforcement Network must establish a task force to develop a strategy to impose anti-money laundering safeguards and enforce requirements on certain professions. Finally, domestic title insurance companies must obtain, maintain, and report to the Department of the Treasury information on the beneficial owners of entities that purchase or sell residential or commercial real estate in transactions involving the domestic title insurance company.