The Fact Coalition has scored a huge victory it obtaining the support of the “world’s largest commercial banks” for federal legislation to fight shell corporations, an issue I have written about since 2013 (here and here).
“The Financial Accountability and Corporate Transparency (FACT) Coalition is a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy and promotes policies to combat the harmful impacts of corrupt financial practices.” The American Sustainable Business Council and the South Carolina Small Business Chamber of Commerce are Fact Coalition members.
The giant, international banks have now recognized the importance for all corporations clearly identifying their beneficial owners. Without this information federal, state and local law enforcement agencies cannot protect us from nefarious actors—terrorists, criminal enterprises and even phony small businesses—that threaten our safety and economic interests. Law enforcement organizations like the Federal law Enforcement Officers Association, ATF Association and National Fraternal Order of Police are supporting incorporation transparency.
Below is the Fact Coalition press release on the support of the financial corporations for the federal legislation called the Incorporation Transparency and Law Enforcement Assistance Act.
The Fact Coalition
August 9, 2016
Letter from The Clearing House Endorses Bipartisan Incorporation Transparency and Law Enforcement Assistance Act
WASHINGTON, D.C. – On Monday, the Clearing House Association—representing the world’s largest commercial banks—sent a letter to Congressional lawmakers supporting strong measures to crack down on the abuse of anonymous companies. The group, which counts among its owners Bank of America, Citibank, JPMorgan Chase, and Wells Fargo, explicitly endorses the bipartisan Incorporation Transparency and Law Enforcement Assistance Act (H.R.4450, S.2489).
The letter opens by stating:
“The Clearing House Association is pleased to support S. 2489/H.R. 4450, the Incorporation Transparency and Law Enforcement Assistance Act. We believe the bill would assist public sector efforts to identify money laundering and terrorist financing through the disclosure of the beneficial owners of corporations. In addition, the legislation would bring the United States further in line with international AML/CFT expectations, such as the recommendations developed by the Financial Action Task Force (FATF). We can see no justification for allowing corporations to shield their ownership.”
The full letter can be read here.
The bipartisan legislation (H.R.4450, S.2489), which has been gaining momentum since the release of the Panama Papers earlier this year, is sponsored by Reps. Peter King (R-NY) and Carolyn Maloney (D-NY) as well as Sens. Charles Grassley (R-IA) and Sheldon Whitehouse (D-RI).
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