The U.S. is the easiest place in the world for a criminal, terrorist, tax cheat, or kleptocrat to open an anonymous shell company to launder their money with impunity. Anonymous corporations are great ways to hide money and other assets — they can hold a bank account or buy a yacht. Criminals often layer anonymous corporations, with one owning another and so on, making it even harder for law enforcement to “trace the money” and figure out who is directing the company’s activity. It’s time to ending the use of anonymous shell companies as vehicles for illicit activity by requiring that the true owners of U.S. companies be disclosed at the time of formation and updated upon any change.
In this month’s edition of Just the FACTs, Erica Hanichak and Zorka Milin are named FACT co-directors, Microsoft and other major multinationals release their first EU international tax reports, Julia Yansura contributes to hard-hitting reporting on Ecuadorian gold, and more.
Read the farewell blog from outgoing FACT executive director Ian Gary, who reflects on his decades-long career in international social justice advocacy, and looks toward a brighter future where democracy is better able to deliver for people and hold powerful actors accountable.
FACT is pleased to announce the appointment of Zorka Milin and Erica Hanichak as co-directors following the departure of executive director Ian Gary.
Recent backsliding on important anti-money laundering initiatives, including the administration’s regulatory gutting of the Corporate Transparency Act, have raised concerns about how the U.S. will perform in its upcoming FATF mutual evaluation. The stakes are both global and domestic.
A number of misconceptions have been cited by lawmakers to justify repealing and hollowing out the Corporate Transparency Act (CTA). In a letter to House Financial Services Committee leadership, FACT and Transparency International U.S. set the record straight.
“There could be no greater gift to the fentanyl traffickers, fraudsters, and U.S. adversaries that rely on the anonymity that shell companies provide than gutting the Corporate Transparency Act.” – FACT Deputy Director Erica Hanichak
