Power of Story Send a Tweet        
- Advertisement -

Share on Google Plus Share on Twitter Share on Facebook 1 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (1 Shares)  

Printer Friendly Page Save As Favorite View Favorites (# of views)   No comments
OpEdNews Op Eds

New Rules On Corporate Secrecy Have Glaring Loopholes

By   Follow Me on Twitter     Message Dave Johnson       (Page 1 of 3 pages)     Permalink

Related Topic(s): ; ; ; , Add Tags  Add to My Group(s)

Must Read 1  
View Ratings | Rate It

opednews.com

Author 4387
Become a Fan
  (12 fans)
- Advertisement -

Reprinted from Campaign For America's Future

Secrecy for Sale
Secrecy for Sale
(Image by thedescrier)
  Permission   Details   DMCA

The Treasury Department released a new rule and several proposals last week that they said are intended to address the problem of corruption and dirty money in secret U.S. shell companies.

- Advertisement -

A White House news release announced what it called "several important steps to combat money laundering, corruption, and tax evasion, and called upon Congress to take additional action to address these critical issues." (A White House fact sheet is available here.)

The new rules at first glance appear strong. But after examining the details, several watchdog groups are warning that the new regulations and proposals leave open several glaring loopholes, and even practically provide instructions for how to get around the regulations.

The New Rules

- Advertisement -

Reuters has the story on the new rules, in "U.S. issues rule requiring banks to identify shell company owners":

"The Obama administration is issuing a long-delayed rule requiring the financial industry to identify the real owners of companies and proposing a bill that would require companies to report the identities of their owners to the federal government, U.S. officials said on Thursday.

"The Customer Due Diligence (CDD) rule, in the works since 2012, and the proposed legislation are meant to hinder criminals from using shell companies to hide ownership and launder money, finance terror, and commit other threats to the global financial system.

"[...] The final CDD rule will require banks, brokers, mutual funds and other financial institutions to collect and verify the identities of the real people, or 'beneficial owners,' who own and control companies when those companies open accounts."

The new rule requires banks to do more checking to find out who owns corporations that are getting bank accounts, so "shell corporations" can't hide their owners. According to the White House, the rule will require "financial institutions to know and verify the identities of the natural persons (also known as beneficial owners) who own, control, and profit from companies when those companies open accounts."

Proposed Laws

- Advertisement -

The Treasury Department is also asking Congress for a law that sets up a central registry tracking who owns corporations, with companies required to provide this information when incorporating. Now there is no such requirement or registry so law enforcement and tax collections are stymied.

According to the Reuters report:

"The Treasury is also proposing a regulation that would increase requirements for some foreign-owned companies operating in the United States to report information to the government, which officials said would prevent the use of those companies for tax avoidance purposes.

"In addition, the Justice Department is proposing amendments that would strengthen its ability to pursue foreign corruption cases, including issuing subpoenas for records in money laundering investigations, obtaining overseas records, and using classified information in civil cases."

However, there is stronger legislation already before Congress. David Dayen reports at Salon, in "The Obama administration's Panama Papers misfire: Why new rules to curtail global tax avoidance could actually make things worse":

Next Page  1  |  2  |  3

 

- Advertisement -

Must Read 1  
View Ratings | Rate It

opednews.com

Dave has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Three Charts To Email To Your Right-Wing Brother-In-Law

Upcoming Trans-Pacific Partnership Looks Like Corporate Takeover

Actually, "the Rich" Don't "Create Jobs," We Do

Now We Know Why Huge TPP Trade Deal Is Kept Secret From The Public

Does Clinton Really Oppose TPP? There Is A Test For That

Will TPP Kill The Post Office?