Incorporation Transparency

Corporate Anonymity is a Conduit for Crime

Few people would imagine Delaware or Wyoming as potentially key players in the world of international crime and terror. But as a result of some of the most permissive corporate legal codes in the world, that appears to be a strong possibility.

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Illicit massage parlors prolific and lucrative, study finds

Houston hosts hundreds of massage parlors described in sleazy online sex forums like RubMaps.com that generate about $107 million in illicit revenues each year, according to a new study by Vanessa Bouche, a Texas Christian University political science professor and human trafficking expert.

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How Anonymous Shell Companies Finance Insurgents, Criminals, and Dictators

The Panama Papers leak of eleven million documents in April 2016 revealed that former Iraqi Prime Minister Ayad Allawi, the brother-in-law of Chinese President Xi Jinping, longtime friends of Russian President Vladimir Putin, drug kingpins, and even a soccer megastar had something in common: they all channeled money through anonymous shell companies. Anonymous shell companies are entities that usually employ few or no workers, do not conduct any substantive business, and allow their owners to store or route money while hiding their identities.

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FACT Sheet: Use of Anonymous Companies Cause Widespread Harm

The conversation about the dangers of anonymous companies has largely focused on corrupt foreign leaders and threats to national security, human trafficking, and disruption to business. Additional harms include bidding up prices that fuel the loss of affordable housing, environmental degradation, and tax evasion.

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The Anonymous Companies That Protect Human Traffickers

By Allison Agoglia

Human trafficking is one of the most insidious crimes in our world today.  It’s a business that profits on depriving basic rights — buying and selling them for forced labor or sexual exploitation. Unfortunately, it is the third-or fourth-largest illegal industry in the world (depending on how one measures) — and one that is growing rapidly.  It is estimated to amount to $150 billion in profits each year while keeping 21 million people in slavery — at least that we know of.

Human traffickers hide in the shadows, making them extremely elusive to authorities. Vanessa Chauhan, a strategic engagement adviser at Polaris and FACT Coalition member, says, “It’s a hidden crime and unless you’re looking for it, you’re not going to find it.”  To remain hidden, some traffickers use illicit schemes, including complex webs of anonymous companies, that allow them to quietly launder the proceeds from their illicit activity and shield them from accountability.

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Shell Companies Undermine Sanctions against North Korea

On Aug. 5, the United Nations Security Council voted to pass powerful new sanctions on North Korea. If successfully enforced, the new sanctions could deal a significant blow to the regime, cutting off as much as its foreign currency supply. But if sanctions are going to have any effect on the North Korean regime, we cannot continue to leave open critical loopholes that allow them to launder money and get around the sanctions.

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New Report: Anti-Money Laundering Efforts Near Failure

Former Treasury Agent Urges Authorities to Target the Drivers of Human Trafficking, Drug Smuggling, and Corruption

Ending Anonymous Companies; Trade Transparency Units; Holding Gatekeepers Accountable Among Policy Recommendations

WASHINGTON, D.C. – Worldwide anti-money laundering efforts are currently just a decimal point away from total failure, according to a new report published Tuesday by the FACT Coalition.

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Countering International Money Laundering

Worldwide anti-money laundering efforts are currently just a decimal point away from total failure, according to this August 2017 report published by the Financial Accountability and Corporate Transparency Coalition (FACT Coalition).

Authored by former Treasury Special Agent John Cassara, an internationally renown expert on financial crime, the study details the near failure of current efforts to combat money laundering and the rationale for comprehensive reform.

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FinCEN Real Estate Effort Underscores Need to End Anonymous Companies

Statement by the FACT Coalition on Treasury Department Decision to Renew and Expand 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 Tuesday that it was renewing and expanding its temporary orders seeking to uncover illicit activity in the luxury real estate sector.

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