⚰️R.I.P. Anonymous Shell Companies

January 25, 2024

Hello! It’s Thursday.

❝

There’s a good argument that right now, the best place to hide and launder ill-gotten gains is actually the United States.

Secretary of U.S. Treasury Janet L. Yellen

⚰️R.I.P. Anonymous Shell Companies

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has began accepting beneficial ownership information reports.

🎯The Target: “Anonymous Shell Companies”

Shell companies are often legally incorporated and registered by criminal organisations but they have no legitimate business. Shell companies are used to conceal the ultimate beneficial owner and assets. They are formed to maintain clients’ confidentiality and serve various tax and trust-related purposes.

🚩Shell companies are often used to enhance secrecy. Although shell companies may be created for legitimate purposes, the use of shell companies are well documented by the Financial Action Task Force (FATF) as a facilitator of money laundering. Shell companies and nominees are widely used mechanisms to launder the proceeds of criminal activity.

For that reason reporting companies must now provide four pieces of information about each beneficial owner:

Subscribe to keep reading

This content is free, but you must be subscribed to Clamacherry to continue reading.

Already a subscriber?Sign In.Not now