Included in the defense bill is a provision that bans anonymous shell companies.
The defense bill that Congress recently passed, which overrode the president’s veto, includes new legislation requiring companies to report their real owners or “beneficial ownership” to the Department of Treasury’s Financial Crimes Enforcement Unit.
Part of the Defense Authorization Act, the Corporate Transparency Act is intended to prevent companies from hiding funds acquired by criminals or corrupt officials or hiding behind corporate organizations capable of concealing that information. The U.S. led the world in anonymous shell companies as of 2011.
Those who violate the provisions of the act failing to complete or update information or provide fraudulent information can face up to three years in prison. Additionally, anyone forming a company in the United States will be required to submit their name, date of birth, and unique identification number.
Treasury Secretary Steven Mnuchin and Senator Mark Warner rallied behind the anonymous shell legislation and a nonprofit group against global corruption also worked with lawmakers on the legislation that they called “historic.”
As the Lord Leads, Pray with Us…
- For the government officials as they attempt to eliminate anonymous shell companies that have hidden criminal or corrupt activities.
- That the Justice Department would be discerning in bringing those who have utilized the shell companies for such activities to justice.
Sources: Washington Examiner, New York Post, Reuters
