Corporate Transparency Act
Congresswoman Maloney first introduced legislation to combat anonymous shell companies in 2009, then named the Incorporation Transparency and Law Enforcement Assistance Act, and has introduced a version of the bill in every subsequent Congress. The Congresswoman introduced H.R. 2513, the Corporate Transparency Act of 2019, on May 3, 2019. It was passed by the House of Representatives with a bipartisan vote of 249-173 on October 22, 2019. A version of the bill was included in the FY21 NDAA.
This bill will crack down on anonymous shell companies, which have long been the vehicle of choice for money launderers, terrorists, and criminals by requiring companies to disclose their true, beneficial owners at the time the company is formed. By doing so, it will finally allow law enforcement to follow the money in their investigations, and will prevent terrorists, kleptocrats, and other bad actors from using the U.S. financial system to hide their dirty money.
The Financial Accountability and Corporate Transparency (FACT) Coalition called the legislation “landmark transparency reform” that “will improve our anti-money laundering rules, protect American communities from the harms caused by criminal and corrupt activity, and ensure the integrity of our financial system.”
More on Corporate Transparency Act
WASHINGTON, DC — At today’s House Financial Services Committee hearing entitled “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response,” Congresswoman Carolyn B. Maloney (D-NY), senior member of the committee, questioned Treasury Secretary Janet Yellen about what steps the Treasury Department is taking to implement the provisions of her Corporate Transparency Act, and about the impacts COVID will have on the American labor force going forward, post-pandemic.
On New Year’s Day, as millions of Americans declared their resolutions, Congress passed its own bipartisan legislative “resolution” — the Corporate Transparency Act — to end the nationwide proliferation of anonymous shell companies. This anti-corruption measure, which was tacked onto the National Defense Authorization Act, represents a laudable first step in combatting the money laundering and financial fraud originating from these domestic and foreign shadow entities, but the problem’s massive scope demands bolder action.
MIAMI (AP) — For years as a federal prosecutor in New York, Daniel R. Alonso led teams that had to search through a maze of anonymously owned corporate entities to expose criminal activity.
“It required all kinds of shoe-leather investigating to identify who was really behind these shell companies,” recalled Alonso. “You’d have to subpoena bank records and lawyers, as well as human sources, and even then you frequently hit a dead end.”
Clark Gascoigne’s entire career has been about ending anonymous shell companies.
Starting at Global Financial Integrity in 2009 and then at the Financial Accountability and Corporate Transparency Coalition, Gascoigne has been on a mission to inject transparency into the ocean of anonymously owned corporate entities that can hide all manner of financial malfeasance.
NEW YORK, NY - Today, Congresswoman Carolyn B. Maloney (D-NY), author of the Corporate Transparency Act, joined with George Venizelos, Retired Assistant Director, NY Division of FBI to speak to the importance of the bill to counterterrorism operations and applaud the bill’s inclusion in the NDAA for Fiscal Year 2021 at 650 5th Avenue – a building that had unknowingly been owned by Iran.
WASHINGTON, DC – Congresswoman Carolyn B. Maloney (D-NY), author of the Corporate Transparency Act, was joined by the FACT Coalition today to applaud the bill’s inclusion in a must pass bill that is expected on the House floor this coming week.
The Corporate Transparency Act would require companies to disclose their true, beneficial owners at the time the company is formed to prevent bad actors from using anonymous shell companies to thwart law enforcement and hide their illicit activities.
Broad legislation to combat the use of shell companies by criminals and foreign adversaries is nearing the finish line after more than 10 years of lobbying and negotiations.
The landmark measure to overhaul financial crime safeguards is hitching a ride on the annual defense authorization bill, the National Defense Authorization Act (NDAA), poised for passage before the end of the year.
For nearly 30 years, a 36-story office building in the heart of midtown Manhattan — around the corner from Radio City Music Hall and Rockefeller Center — was secretly owned by the government of Iran. How was a government that was under economic sanctions able to own a highly coveted piece of real estate in the middle of the largest city in the United States? The answer is surprisingly simple: It used anonymous shell companies. What’s worse, those shell companies were not created in some shady foreign jurisdiction — they were formed right here in the U.S.