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Glad to see bipartisan support for the bill long overdue exposing shell companies, long overdue. Some hedge funds of course got a waiver.
Quote:
A groundbreaking measure to ban anonymous shell companies in the United States cleared Congress on Friday as the Senate joined the House in passing a defense-spending bill with a veto-proof margin.
The Corporate Transparency Act, which was tacked onto the defense bill, would require corporations and limited liability companies established in the United States to disclose their real owners to the Treasury Department, making it harder for criminals to anonymously launder money or evade taxes. The rule applies to future and existing entities alike.
Nearly 2 million corporations and limited liability companies are registered each year in the United States, at the state level. Few states today require companies to disclose their true owners, with Delaware and a few others turning the registration of anonymous companies into big business.
Tolerance of anonymous shell companies has long helped drug- and human- traffickers, organized crime groups and foreign kleptocrats launder their ill-gotten gains through the U.S. financial system, supporters of the legislation say. It took Michael Cohen, President Trump’s former lawyer, only a few days to set up and use an anonymous Delaware LLC to pay hush money to Stormy Daniels, in violation of campaign finance laws.
The law requires anyone registering a new company to disclose the name, address and date of birth of the real owners, and an identification number for each owner, such as a driver’s license or passport number. Corporations and LLCs that already existed before the law’s adoption must disclose their ownership information to the Treasury Department within two years.
Tax cheats deprive governments worldwide of $427 billion a year
In another transparency setback, the law also exempts some entities from the disclosure requirements, including domestic investment funds that are advised and operated by a registered investment adviser. Gascoigne said that exemption was the result of lobbying by the private-equity and hedge-fund sectors.
The database is likely to help prosecutors nationwide build cases against criminal groups, said Frank Russo, director of government and legislative affairs at the National District Attorneys Association.
The lack of such a database today is undermining efforts in Florida to combat human-trafficking networks at illicit massage parlors, Russo said.
I know of some companies here in this town, are 6-10 levels deep in a company owned by another company own by another company..... and practice "price fixing" under the radar.
The can corner the market in some segments if you are not paying attention. (say all the auto repair shops... they have different names, but if you dwell into the chain of ownership, it leads back to one corporation)
I know of some companies here in this town, are 6-10 levels deep in a company owned by another company own by another company..... and practice "price fixing" under the radar.
The can corner the market in some segments if you are not paying attention. (say all the auto repair shops... they have different names, but if you dwell into the chain of ownership, it leads back to one corporation)
Very true, some of these LLC's have a difficult time why they even exist and like you indicated there is a chain that makes it difficult to trace, problematic for the IRS and DOJ.
I know of some companies here in this town, are 6-10 levels deep in a company owned by another company own by another company..... and practice "price fixing" under the radar.
The can corner the market in some segments if you are not paying attention. (say all the auto repair shops... they have different names, but if you dwell into the chain of ownership, it leads back to one corporation)
I have to agree. This is the sort of bipartisan laws that I hope we can all agree on. The shenanigans that happen due to these anonymous shell companies is insane.
I know of some companies here in this town, are 6-10 levels deep in a company owned by another company own by another company..... and practice "price fixing" under the radar.
The can corner the market in some segments if you are not paying attention. (say all the auto repair shops... they have different names, but if you dwell into the chain of ownership, it leads back to one corporation)
Auto repair shops run on book time. They don't decide what that is.
How are they cornering the market?
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