Last Tuesday Senator Warren released her plan to track hidden money & fight corruption. Money launderers, tax dodgers, narco-traffickers; terrorist financiers and other fraudsters can easily establish shell companies without disclosing who actually owns the shell companies. They open bank accounts and maintain the bank accounts in the names of the shell companies, as mentioned at my December 10th & December 17th posts. As a result, the money launderers, terrorist financiers, tax dodgers, etc. secretly transfer money through these bank accounts. By following these steps, they wash the money & hinder an asset search.
Therefore, part of Senator Warren’s plan seeks “beneficial ownership” disclosure regarding shell companies. The plan at Senator Warren’s website however, does not explain who would make the disclosure. Businesses that form and sell shell companies might have to identify the beneficial owners of shell companies and report this information to governmental authorities which track hidden money. The beneficial owners of shell companies could also be required to make reports to governmental authorities.
Whatever your views about Senator Warren are, you will hopefully agree that it would be a good idea to require “beneficial ownership” disclosure. For the reason that the misuse of shell companies has real-world consequences as the “Victims of Offshore” video explains.
Video: Courtesy of ICIJ
Copyright 2019 Fred L. Abrams