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.
Treasury begins accepting ownership information reports under the Corporate Transparency Act, the Foreign Extortion Prevention Act is signed into law, and the Biden Administration provides an update on long-awaited AML reforms for real estate and private investment markets.
FACT welcomes the release by Treasury of the final rule necessary to begin reporting under the landmark Corporate Transparency Act. The upcoming launch of Treasury’s beneficial ownership database on January 1, 2024 represents the largest U.S. anti-money laundering victory in decades.
FACT recommends that the FATF employ stronger language to encourage countries to establish enhanced beneficial ownership reporting standards for trusts and other under-regulated entities.
Read FACT’s official comment urging global governments to strengthen existing systems and multilateral cooperation on beneficial ownership transparency ahead of the 10th Conference of State Parties to the UN Convention Against Corruption.
FACT submits comments praising Treasury’s revised beneficial ownership reporting form, and suggests small changes to help improve user experience and increase the usefulness of reported information for law enforcement.
Treasury’s revised beneficial ownership information reporting form incorporates critical feedback from FACT and its allies, removing fields that would have introduced unprecedented optionality to reporting under the Corporate Transparency Act.
