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.
FACT Coalition Statement on the One Year Anniversary of the Panama Papers Leaks
WASHINGTON, D.C. – Monday, April 3rd marks the one year anniversary of the leak of the “Panama Papers” — more than 11 million documents from a Panamanian law firm obtained by the International Consortium of Investigative Journalists (ICIJ).
The Financial Accountability and Corporate Transparency Coalition (FACT Coalition) submitted the below comments to the General Services Administration (GSA), in response to RFI #ID15170001, urging the agency to adopt a non-proprietary, open identifier system for use in federal procurement that includes the collection of information on the real people who own and control bidders of federal contracts and grants (also known as ‘beneficial owners’).
The U.S. government goes to great lengths to protect our national security. And yet, our failure to manage company ownership in this country leaves us exposed to all sorts of risk. Put simply, it is way too easy for the criminal or corrupt to hide their ownership of U.S. property behind a fake company, or a series of companies in order to stash or move their dirty money without detection.
Let me give you an example. In 2013, a Global Witness undercover investigation exposed how the former Chief Minister of Sarawak in Malaysia, Abdul Taib Mahmud, and his family used their political status to buy land and forest concessions for way less than their commercial value. Swathes of the Sarawak rainforest were destroyed as a result of these schemes, as well as various abuses committed against the rightful land owners. The Chief Minister’s brother used his secretly owned Singaporean company to hide profits from those corrupt forest and land deals and so that he could avoid paying around $10 million in taxes.
Statement by the FACT Coalition on Treasury’s Decision to Renew Geographic Targeting Orders to Identify Buyers in Luxury Real Estate
WASHINGTON, D.C. – The Financial Crimes Enforcement Network (FinCEN), a branch of the U.S. Treasury Department, announced that it was renewing its temporary orders seeking to uncover illicit activity in the luxury real estate sector.
Representative Carolyn Maloney (D-NY) introduces an amendment to add the issue of anonymous companies to the docket of the Terrorism and Illicit Finance Subcommittee of the Financial Services Committee. Representative Jeb Hensarling (R-TX), Chair of the House Financial Services Committee, and Representative Stevan Pearce (R-NM), Chair of the Terrorism and Illicit Finance Subcommittee, endorse the amendment and call for action on anonymous companies. The committee approves the amendment.
Ending Anonymously-Owned Companies Would Be Widely Seen as an Effective Strategy in Crippling Those Who Pose a Real Danger to the U.S.
The President’s executive order banning refugees and legal immigrants from seven Muslim-majority nations has led to large protests in the U.S. In a conversation yesterday with anti-corruption advocates based in Canada and Belgium, I listened as they discussed the outrage this order has generated around the globe. The action, it appears, only reinforces the worst fears they held about the new administration.
The order is unconscionable, likely unlawful and—according to a growing list of security experts— unhelpful in protecting the nation against acts of terror. Just a few days in and the stories of harm and disruption are piling up.
