Bill Would Require Shell Corporation Owners to Be Revealed

Chris Gaetano
Published Date:
Jun 30, 2017
By Original uploader was Brian0918 at en.wikipedia - Transferred from en.wikipedia, CC BY-SA 3.0

A bill with both Democratic and Republican support would require corporations and limited liability companies to file information about their beneficial owners, according to Accounting Today. Specifically, if the company does not have to file this information with state authorities, the bill would require that the company do so with federal authorities instead. Entities would need to disclose the beneficial owners’ name, current address, and non-expired passport or state-issued driver’s license.This information would only be available to law enforcement and financial institutions, with customer consent, for the purposes of "know your customer" regulations. The bill is aimed at discouraging the use of shell corporations for illicit purposes. Federally regulated banks, credit unions, investment advisers, broker-dealers, state-regulated insurance companies and charitable organizations are already required to disclose their beneficial owners, and so they would be exempt from the bill’s requirements. Companies with more than 20 employees and over $5 million in gross receipts or sales, and which have a physical presence in the U.S., would also be exempt from the bill’s requirements, as they are considered unlikely to be anonymous shell companies that were created to hide or launder illicit funds, according to Accounting Today. 

The House bill, titled the Corporate Transparency Act, is sponsored by Rep. Carolyn B. Maloney, D-N.Y., and Peter King, R-N.Y. The Senate version, the True Incorporation Transparency for Law Enforcement (TITLE) Act, is sponsored by Sen. Sen. Chuck Grassley, R-Iowa, and Sheldon Whitehouse, D-R.I.

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