A House committee approved
H.R. 2513: Corporate Transparency Act of 2019 June 12, 2019 that would require companies to disclose the identity of their beneficial owners in an effort to unmask anonymous shell companies and help law enforcement combat illicit money laundering and tax evasion.
In a vote of 46-13, the House Committee on Financial Services favorably reported H.R. 2513, the Corporate Transparency Act of 2019, which would require U.S. companies to report the name, date of birth, passport or driver's license number and current address of those who receive the gain from company profits to the U.S. Department of the Treasury's Financial Crimes Enforcement Network. The bill may now be considered by the full chamber.
“Disrupting terrorist financing networks should be one of our top priorities, but right now, terrorist groups can easily hide their money using anonymous shell companies.” said Rep. Carolyn B. Maloney, D-N.Y., one of the original sponsors of the bill.
H.R. 2513 was introduced on May 3, 2019 and is in the first stage of the legislative process. It was introduced into Congress on May 3, 2019.
Advocates of the Bill have long claimed that tracking beneficial ownership is the key to combating illicit financial flows and have criticized the U.S. for failing to enact reporting rules in keeping with the common reporting standard promoted by the Organization for Economic Cooperation and Development.
A Group Of 91 National Security Specialists "Urged The Committee To Approve The Legislation, Citing A Report That Says The Anonymous Ownership Of Businesses Can Facilitate Tax Evasion And Other Crimes.
The signees included former military officers, government officials, law enforcement agents and foreign policy specialists.
The letter cited a recent report from Global Financial Integrity, a group that promotes financial transparency, that said U.S.-based shell companies are linked with tax evasion and hidden proceeds from smuggling, weapons dealing and other crimes.
The Report Also Noted That In Any U.S. State,
More Information Is Required To Obtain A Library Card Than To Register A Company.
The U.S. was the first country to enact reporting requirements for foreign banks holding Investment Accounts for US taxpayers, entitled U.S.the Foreign Account Tax Compliance Act (FATCA) in 2010. Those requirements became the basis for the Organization for Economic Cooperation and Development’s common reporting standard, which encourages countries to exchange information about financial account holders among their tax authorities.
The Bill Has a 12% Chance of Being Enacted.
The overall text of the bill does little to affect its chances of being enacted. The bill is assigned to the House Financial Services committee. The bill's primary subject is Finance and financial sector.
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