Janet Yellen, U.S. Secretary of the Treasury, speaks during an interview at the National Association for Business Economics (NABE) annual meeting in Arlington, Virginia, U.S., on Tuesday, September 28, 2021.
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The US Treasury Department’s anti-corruption watchdog said on Tuesday it wants to issue a new rule aimed at cracking down on criminals who use businesses and shell companies to hide illicit funds. behind the network corporate structure is not clear.
The Financial Crimes Enforcement Network, an office of the Treasury Department and known as FinCEN, has announced that the future rule will require more companies to provide more detailed information about their investors. .
Ministry of Finance Department said in a fact sheet.
The Treasury hopes that upgraded transparency rules will prevent bad actors from setting up shell companies to launder illicit money and ultimately make it easier for law enforcement to track down. movement of criminal funds.
Treasury officials believe the new rule will force limited liability companies and partnerships to provide information about individuals who own or control at least 25% of the entity or anyone holding “rights” significant control” over the enterprise.
Companies will be required to provide FinCEN with the owner’s name, date of birth, address and other identifying documents. Companies incorporated prior to the rule’s promulgation will have one year to file their initial reports, while those incorporated after that will have 14 days to file.
FinCEN Acting Director Himamauli Das said: “FinCEN is actively targeting those who will exploit anonymous shell corporations, front companies and other loopholes to launder money for crimes. crimes, such as corruption, trafficking in drugs and weapons, or financing terrorism,” the statement said.
The proposed rule is part of a broader effort by the Biden administration to protect democracy leading to The first summit on democracy This weekend. The two-day virtual event will bring together officials from around the world to renew commitments to democracy and advertise the benefits of representative government.
The administration has announced new sanctions against foreign government officials and those it accuses of corruption and human rights abuses. Lawmakers and activists say the White House should use such tools to punish Russian oligarchs, Chinese officials and other alleged corruptors.
Treasury officials who spoke to reporters on Tuesday said their department is uniquely equipped to support those efforts because it oversees sanctions policies. The department said on Monday that it was also seeking to tackle corruption by exaggerating reporting requirements on all-cash real estate transactions.
