Stricter Transparency Laws Demanded in USA

May 16, 2012 Taxation in USA

Stricter Transparency Laws Demanded in USAWASHINGTON D.C. – Businesses and civil groups across the USA are pushing for the government to instate new laws requiring all companies to disclose reveal their owners before they can be incorporated.

On May 16th every member of the US House of Representatives and the US Senate received a letter signed by 41 American businesses and non-government organizations, urging the politicians to co-sponsor or support the Incorporation Transparency and Law Enforcement Assistance Act.

If passed into law, the new act would require all companies to disclose their ultimate beneficial owners at the time they are incorporated. It is believed that the regulations would greatly reduce the national and international occurrence of corruption and money laundering with the use of US registered shell companies.

Commenting on the intentions of the letter, the managing director at Global Financial Integrity Tom Cardamone said that “…anonymous shell companies make the U.S. financial system a playground for both foreign and domestic corrupt, criminal, and tax evading money.” He continued on to say that enacting the new law is critical for the USA, both in regards to law enforcement and national security.

According to the letter, over 2 million companies are incorporate in the USA every year, and investigations be international and national law enforcement agencies are continuing to reveal widespread use of US shell companies by ” terrorists, narco-traffickers, arms dealers, corrupt foreign officials, tax evaders, [and] individuals targeted for financial sanctions.”

The act was first introduced on August 2nd 2011, and, according to Global Financial Integrity, already has the support of the Obama Administration, the Department of the Treasury, the Department of Homeland Security, the US Department of Justice, along with several law enforcement agencies.

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