Federal

Shell Company Abuse Act

Source: Congress.gov · 370 words in original text

What This Bill Does

This bill makes it illegal for owners, officers, attorneys or incorporation agents to create or use a corporation to hide election contributions and donations from foreign nationals. The bill adds a new crime to federal law and sets a prison sentence for people who break this rule.

Who It Affects

Owners, officers, attorneys and incorporation agents of corporations, companies or other business entities who try to hide foreign election contributions.

Key Provisions

• It is illegal to establish or use a corporation, company or other entity with the goal of hiding an activity by a foreign national (a person not a U.S. citizen) that is already prohibited under election law. (Sec. 2(a)) • A person who violates this law can be imprisoned for no more than 5 years, fined, or both. (Sec. 2(b))

What Changes

A new crime called "Establishment of corporation to conceal election contributions and donations by foreign nationals" is added to Chapter 29 of federal criminal law. People caught breaking this rule face up to 5 years in prison and possible fines.

Important Definitions

Foreign national is defined by reference to the Federal Election Campaign Act of 1971, but the specific definition is not provided in this bill text.

Effective Date

Not specified in bill text

I 118TH CONGRESS 1ST SESSION H. R. 988 To amend title 18, United States Code, to prohibit the establishment of a corporation to conceal election contributions and donations by foreign nationals. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 14, 2023 Mr. ALLRED (for himself and Mr. CROW) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 18, United States Code, to prohibit the estab- lishment of a corporation to conceal election contribu- tions and donations by foreign nationals. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Shell Company Abuse 4 Act’’. 5 SEC. 2. PROHIBITION. 6 (a) IN GENERAL.—Chapter 29 of title 18, United 7 States Code, is amended by adding at the end the fol- 8 lowing: 9 VerDate Sep 11 2014 05:15 Mar 03, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H988.IH H988 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 988 IH ‘‘§ 612. Establishment of corporation to conceal elec- 1 tion contributions and donations by for- 2 eign nationals 3 ‘‘(a) OFFENSE.—It shall be unlawful for an owner, 4 officer, attorney, or incorporation agent of a corporation, 5 company, or other entity to establish or use the corpora- 6 tion, company, or other entity with the intent to conceal 7 an activity of a foreign national (as defined in section 319 8 of the Federal Election Campaign Act of 1971 (52 U.S.C. 9 30121)) prohibited under such section 319. 10 ‘‘(b) PENALTY.—Any person who violates subsection 11 (a) shall be imprisoned for not more than 5 years, fined 12 under this title, or both.’’. 13 (b) TABLE OF SECTIONS.—The table of sections for 14 chapter 29 of title 18, United States Code, is amended 15 by inserting after the item relating to section 611 the fol- 16 lowing: 17 ‘‘612. Establishment of corporation to conceal election contributions and dona- tions by foreign nationals.’’. Æ VerDate Sep 11 2014 05:15 Mar 03, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H988.IH H988 kjohnson on DSK79L0C42PROD with BILLS

Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.