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.
More than 100 national security experts sent a letter to the U.S. House of Representatives urging members to end the incorporation of anonymous shell companies.
15 NGOs sent a letter of support for the Aircraft Ownership Transparency Act (H.R.393) and Secure Government Buildings from Espionage Act (H.R.392).
The Fraternal Order of Police sent a letter in support of the ILLICIT CASH Act (S. 2563) which includes a provision requiring the collection of beneficial ownership information.
ILLICIT CASH Act Opens Viable Pathway to Senate Passage
Statement by Gary Kalman, Executive Director of the FACT Coalition
WASHINGTON, D.C. — A bipartisan group of eight U.S. senators on a key Senate committee introduced legislation Thursday to update federal anti-money laundering laws and end the incorporation of anonymous companies in the U.S.
More than a dozen anti-human trafficking groups sent a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs urging members to end the incorporation of anonymous shell companies.
Anonymous companies have been used by rogue employees to embezzle money, fraudulent vendors to undermine supply chains, and bogus competitors to steal contracts.
With fewer resources than larger enterprises, small businesses are often easy targets for scammers and criminals.
