Shell companies have been called the “getaway cars” of corruption. In some jurisdictions, including the United States, individuals can easily set up anonymous companies and use them to hide stolen funds.
Last week, members of congress introduced bipartisan bills in the House of Representatives and Senate that would, finally, make this practice more difficult.
The legislation would also address contradictions in current U.S. policy toward corruption, as shown by several oil sector cases mentioned in this article.
The bills would require U.S. companies to identify their beneficial owners – the individuals who actually control and benefit from their activities – and report this information to state governments. The European Union passed similar requirements in 2015.
Ideally, the bills would have called for the public disclosure of beneficial ownership information, as is the case in the UK, so as to enable more widespread oversight. But the collection of beneficial ownership data into centralized registries will at least allow law enforcement, financial institutions and others to detect when suspicious individuals set up shop in the United States.
To read full article – please click here.
