The White House is throwing its support behind legislation that would require U.S. companies to better identify their beneficial owners as part of a strategy to thwart international crime groups. Congress should enact legislation that would require legal entities to disclose the information at the time of formation in "order to enhance transparency for law enforcement and other purposes," according to the Obama administration's "Strategy to Combat Transnational Organized Crime," published Monday. The strategy separately proposed increasing data sharing with private companies and more regularly invoking a U.S. Patriot Act power that allows the Treasury Department to designate foreign banks...
As the U.S. Treasury Department readies beneficial ownership rules for financial institutions, senators are weighing the introduction of two competing corporate transparency bills that would require disclosures by private companies.
A U.S. Treasury Department proposal that asks banks to identify corporate owners could also end up shining a light on the often murky hedge fund sector, say attorneys.
Intergovernmental plans to better identify corporate owners will do little to thwart financial crooks, even at great cost to banks and governments, according to an academic report on offshore financial flows.
U.S. sanctions against an international gang with thousands of American members will challenge compliance officers of small and midsize banks, say attorneys and former government officials.
The U.S. Treasury Department will clarify the customer due diligence obligations that financial institutions must observe when opening accounts for businesses, a department official told lawmakers Wednesday.
Company formation agents would be required to implement anti-money laundering programs to better vet their clients under a broad measure introduced Tuesday by two influential U.S. lawmakers.
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