COMPLIANCE WEEK: Congress shows new resolve to combat shell companies
On June 12, the House of Representatives’ Financial Services Committee voted to pass what proponents are calling “a landmark corporate transparency bill”—with 33 Democrats and 10 Republicans advancing the bill to the full House and, ultimately, the Senate and White House.
The bill, known as the ”Corporate Transparency Act” is sponsored by Carolyn Maloney (D-NY), who said: “I am tired of money launderers using NYC apartments as bank accounts and driving up home prices for New Yorkers. My bill … will crack down on anonymous shell companies and help to stop this practice by requiring companies to disclose their true, beneficial owners – the people who actually own the LLC – when the company is formed.”
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