Closing Loopholes Against Money-Laundering Practices Act or the CLAMP Act
This bill amends the Internal Revenue Code to require U.S. entities to obtain and have an employer identification number (EIN) assigned by the Internal Revenue Service (IRS).
The bill defines a "U.S. entity" as any business entity created or organized in the United States or under the laws of the United States or of a U.S. state, possession, or territory. The term excludes tax-exempt organizations.
The bill establishes: (1) civil penalties for the failure to have an EIN or provide required information, and (2) a criminal penalty for the willful failure to obtain an EIN.
The IRS may disclose to federal law enforcement officials taxpayer identify information, including an EIN and information from an application for an EIN, for use in investigations and prosecutions of specified offenses related to money laundering and supporting or financing terrorism.
Prior to disclosing the information, the IRS must determine that the disclosure would not seriously impair federal tax administration and consider whether the information requested: (1) is being sought exclusively for use in a federal criminal investigation or proceeding pertaining to the specified offense, (2) is or may be relevant to a matter relating to the offense, and (3) cannot be reasonably obtained from any other source.