At today's House Financial Services Committee hearing, Rep. Joyce Beatty (D-OH) questioned Treasury Sec. Scott Bessent.
Category
š
NewsTranscript
00:00...subcommittee. Ms. Beatty is recognized for five minutes.
00:03Thank you, Mr. Chairman and Ranking Member, and to you, Secretary Besant.
00:07The Trump administration has alleged that detecting and deterring transnational criminal organizations
00:14such as Iranian terrorist groups and their proxies is a priority for national security.
00:22But on March 2nd of 2025, your department announced that it would not enforce any penalties
00:29or fines associated with the BOI reporting rule, nor will it enforce the CTA against U.S. citizens,
00:40domestic reporting companies, or their beneficial owners.
00:44So I'm a little confused of how you square those two things.
00:50So my question is, can you explain to or would you explain to the American public how you undermine
00:58the bipartisan CTA and expect law enforcement and national security agencies to quickly
01:05and effectively know the true owners behind shell companies registered in the United States
01:12now that foreigners, including a drug cartel, gang members, could register a company in the
01:19United States with no state or any federal ownership reporting requirements?
01:25And I remind you, in your testimony, you talked about illicit actors.
01:32Well, these are some of our illicit actors.
01:36The Congresswoman, an overwhelming majority of the domestic entities that you're describing
01:44are hardworking Americans with small businesses.
01:48We bifurcated the bill, and any foreign entities must still file.
01:55So are you saying to me it's not true that they must file and do the foreign entities must
02:02file the BOI?
02:05Yes.
02:06We bifurcated the CTA program that domestics do not have to.
02:13So maybe I'm asking it the wrong way.
02:20So it appears that they are doing it registering to avoid the transparency of who the companies
02:30are.
02:32I'm not sure what your question is.
02:34I'd be happy to answer it.
02:35So I guess I'm looking at it as, and if you're saying it is not true, and that they now are
02:43complying and completing the BOI, so let's take it one step at a time.
02:48So you're saying everybody is completing the BOI.
02:52You're enforcing it.
02:53No, ma'am.
02:54I am saying that we have bifurcated it, that U.S. nationals do not have to file, and that
03:02foreign nationals do.
03:03Okay, so I guess when we look at this, if we're limiting enforcements of the rule just
03:12to the foreign entities, that creates a giant loophole whereby any foreign entity can register
03:19in the United States and evade or not do the BOI reporting requirements.
03:25Well, they would be subject to all, they would have to come through a U.S. financial institution,
03:32so they would be subject to all U.S. institutions.
03:35Including the BOI.
03:36The AML.
03:37Including the BOI.
03:40Including the BOI.
03:41Yes or no?
03:43Because the answer is no.
03:45I mean, you can say it however you want to, but the answer is no.
03:49And this makes it easier, and this is what I want the American folks to know, it makes
03:53it easier for human and drug traffickers, cartels, terrorists, organizations, and other
04:00criminals to do business in the United States.
04:03And when you're limiting the enforcement just to foreign entities, it exempts 99% of the entities
04:10that Congress intended the law to cover when it was passed into law.
04:17So, I think I do have my answer.
04:20We're just not agreeing on it, and we know why.
04:22So, let me go to my second question.
04:23Congresswoman, I would say that the Mexican cartels do not operate over LL.
04:29It is my time.
04:30You will not do this on my time.
04:33Now, I'm going to ask for a few more seconds, since he refused to comply with my time, not
04:38his time.
04:38In 2016, former Secretary Jack Lew announced that Harriet Tugman was to be the new face
04:45of the $20 bill.
04:47Can you tell me what's the current status of this project?
04:52No, ma'am.
04:53I can't, but my staff will get back to you.
04:55No, I want you to get back to me.
04:57Because, see, there seems to be an issue when it comes to things that affect people of color
05:03or people who live in poverty, whether it is what you're doing with Social Security,
05:08what you are doing with restricting funds to the program.
05:12The gentlewoman's time has expired.
05:13So, I want you.
05:14The gentlewoman's time has expired.
05:15The gentlewoman's time has expired.
05:16The gentleman from Texas.
05:17The gentlewoman's time.
05:18The gentlewoman's time.
05:19The gentlewoman's time.
05:20I need him to answer if he will.
05:21I'm not a staff person.
05:22The gentlewoman can submit questions for the record.
05:23I'm not asking him to have his staff report to me.
05:24The gentlewoman can submit.
05:25So, Mr. Chairman, I'm addressing it to you to ask him to respect me.
05:27The gentlewoman's time has expired.
05:28The gentlewoman's time has expired.
05:29The gentlewoman's time has expired.
05:30I'm talking to you.
05:31I need him to address if he will answer me.
05:33The gentlewoman's time has expired.
05:36The gentlewoman's time has expired.
05:37The gentlewoman's time has expired.
05:38I'm not going to stop until you direct him to answer to me as a member of Congress.
05:43The gentlewoman's time has expired.
05:44The gentlewoman has offered that she can submit questions for the record.
05:47Mr. Chairman, point of order to you.
05:49I will not stop.
05:50I will not be silent until you direct him to answer.
05:52The gentlewoman is not offering an appropriate parliamentary inquiry.
05:56Does the gentlewoman have a parliamentary inquiry?
05:58Yes, I do.
05:59Please state the parliamentary inquiry.
06:00As a member of the United States Congress addressing the secretary, I am asking you to
06:07rule on asking this hostile witness to direct his response to me versus having him
06:14tell me that his staff will respond to me.
06:18My staff person didn't ask him the question.
06:20I did.
06:21The gentlewoman does not state a parliamentary inquiry.
06:25So let me ask the point of privilege to you, Mr. Chairman, because I'm not going to
06:28stop this this morning until you respond to me then if you will direct the secretary to
06:34respond to me as a member of Congress.
06:37Or let me ask him.
06:38It is not a point of privilege.
06:39The gentlewoman's time has expired.
06:42The gentlewoman will suspend.
06:43Will he respond to me?
06:45The gentlewoman will suspend.
06:48The gentlewoman will suspend.
06:50The gentlewoman will respond to me if he will respond to me.
06:58The gentlewoman makes a legitimate request she wants a personal privilege, the grand
07:02personal privilege.
07:03You can simply ask him to respond.
07:04Just ask him to respond if he'll respond to a member of Congress versus saying a staffer.
07:06versus saying a staffer.
07:07It's simple as that.
07:10I ask that members keep decorum
07:12and remain cordial during today's hearing.
07:14I am being cordial to you, Mr. Chairman.
07:15The gentlewoman will suspend, the chair has the time.
07:17Mr. Chairman, will you answer the question?
07:18The chair has the time, the gentlewoman will suspend.
07:20The gentlewoman makes a legitimate request.
07:23I ask that members keep decorum
07:25and remain cordial during today's hearing.
07:27I am being cordial.
07:28I resent your statement to imply that I am not.
07:31I am a member of the U.S. Congress.
07:34I am asking this secretary to-
07:35The gentlewoman may submit QFRs for the record,
07:37which will be responded to by the secretary.
07:41The gentlewoman, time has expired.
07:43The gentleman from Texas,
07:44the chairman of the Small Business Committee,
07:46Mr. Williams, is recognized for five minutes.
07:48Thank you, Mr. Chairman,
07:49and thank you, Mr. Secretary, for being here.
07:51This may be a little easier on you here.
07:52I'll try to move it fast forward.
07:54The Chinese Communist Party has enabled their economy
07:57to serve as-