Resources

FACT Sheet: A Brief Summary of the Corporate Transparency Act of 2019 (H.R. 2513)

The Corporate Transparency Act of 2019 takes the simple, yet effective, step to require corporations and limited liability companies (LLCs) to disclose to law enforcement and others with legally mandated anti-money laundering responsibilities (e.g. financial institutions) information on who is the real, natural person (a.k.a. beneficial owner) who owns and controls an entity at the point of formation.

Additional provisions include a) outlawing the formation of bearer share corporations and LLCs, and b) requiring that bids for large federal contracts include the beneficial ownership data of the prospective contractors and subcontractors.

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Counterfeit Companies: How Anonymous Companies Facilitate Illicit Trade

By Julia Keem

In 2017, a Colorado court convicted four individuals, including a former police officer, of racketeering, money laundering, and conspiracy for illegally selling counterfeit Denver Broncos merchandise as well as additional sports products from other professional and college teams around the country. A key element of the international counterfeiting scheme was the use of more than 20 anonymous companies.

This is just one of a number of schemes that were highlighted in a FACT Coalition report, titled “Anonymous Companies Help Finance Illicit Commerce and Harm American Businesses and Citizens,” which was published earlier this year. Authored by David M. Luna, a former U.S. national security official and current chair of the Anti-Illicit Trade Committee of the United States Council for International Business, the report reveals the harms imposed upon legitimate businesses, unwitting consumers, and even the United States military by anonymous companies engaging in the trade in counterfeit and pirated goods. Currently, these criminal entities operate with impunity in the United States and are able to circumvent the law with little risk of accountability. The report concludes that enacting legislation requiring the disclosure of beneficial ownership information is an essential measure to combat the increasingly prolific abuses perpetrated by these shadowy networks.

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Taxing Offshore Profits and Domestic Profits Equally Could Curb Corporate Tax Dodging

By Steve Wamhoff

In recent days, presidential candidates Sen. Kamala Harris and New York Mayor Bill DeBlasio have called for taxing corporate profits the same whether they are earned in the United States or abroad. These calls echo the position of Sen. Bernie Sanders, who has long had a proposal along these lines. As ITEP has explained, correcting this inequity is not a mere detail but rather a sweeping reform that could end incentives for companies to shift profits and jobs offshore.

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How North Korea Abuses Anonymous Companies to Illicitly Procure Mercedes — and Weapons

By Tyler Morrow

The images of Chinese President Xi Jinping and Kim Jong-un waving from atop a Mercedes Benz limo have made the rounds on the internet over the past few days in the wake of a new study published by the Center for Advanced Defense Studies (C4ADS) and covered by the New York Times and CNN, among others. C4ADS research details how North Korea has evaded sanctions to secure luxury goods — and other more nefarious items — through its illicit finance operations.

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FACT Submitted Comments for the Record to the House Subcommittee on Investor Protection

The FACT Coalition filed comments for the record to the House Subcommittee on Investor Protection, Entrepreneurship and Capital Markets. The subcommittee held the hearing “Building a Sustainable and Competitive Economy: An Examination of Proposals to Improve Environmental, Social and Governance Disclosures,” on July 10th, 2019. The full letter can be read below or downloaded here.

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Senators Introduce Bipartisan Bill as Leak of Odebrecht’s “Bribery Division” Underscores Need to End Anonymous Companies

Wyden, Rubio, and Whitehouse’s “Corporate Transparency Act” — Companion to Maloney and King’s H.R.2513 — Would End Incorporation of Anonymous Companies in the U.S.

WASHINGTON, D.C. — Bipartisan momentum to end the incorporation of anonymous companies in the United States escalated on Wednesday following the publication of an international exposé on the scandal-plagued Odebrecht’s “Bribery Division,” as Senators Ron Wyden (D-OR), Marco Rubio (R-FL), and Sheldon Whitehouse (D-RI) introduced legislation that would require companies to disclose their true owner(s) when they incorporate and keep their ownership information up to-do-date.

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