| Incorporation Transparency and Law Enforcement Assistance Act, H.R. 6098 |
I have introduced the Incorporation Transparency and Law Enforcement Assistance Act, H.R. 6098. The bill would require the states to obtain information about the true ownership of the corporation, when they allow someone to create a corporate entity. As some have put it, this bill is a “no-brainer.” And it is fairly straightforward: it would require that the person creating the corporation to state the “beneficial owner” of the corporation and provide some form of identification.
Although this is as straightforward as it sounds, the implications for law enforcement are broad reaching. Criminal organizations are infamous for using shell corporations, both foreign and domestic to open bank accounts, launder money, perpetrate fraud, and finance terrorism. And it isn’t difficult for them to do. Virtually no states require people applying to create corporations to provide the identity of the corporate owner. In fact, 48 of 50 states, except for Alabama and Alaska, allow for the unfettered creation of an anonymous corporate entity. As a result, just about anyone can easily manipulate the system to fund criminal activity.
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