Senators Chuck Grassley (R-Iowa) and Sheldon Whitehouse (D-R.I.) released a joint statement on Thursday expressing strong opposition to a new rule finalized by the Treasury Department. The regulation concerns the Financial Crimes Enforcement Network (FinCEN) and its requirements for reporting beneficial ownership—the information that identifies the actual individuals who own or control a company.

According to the senators, the final rule, which was published on Tuesday, creates a significant loophole by exempting approximately 99 percent of entities from these reporting requirements. Grassley and Whitehouse contend that this decision undermines the intent of transparency legislation designed to prevent illicit financial activities, such as money laundering and the use of shell companies for illegal purposes.

While the senators have framed the decision as a failure to uphold necessary oversight, the Treasury Department has not yet provided a detailed public rebuttal to these specific criticisms in the context of this report. The disagreement centers on whether the current reporting threshold is sufficient to catch bad actors or if the broad exemptions effectively render the oversight mechanism ineffective. The senators’ statement suggests that the current path taken by the Treasury will make it significantly harder for law enforcement to track the movement of illicit funds through the U.S. financial system.