The U.S. Senate on Friday passed a bill related to changes in anti-money laundering rules, which calls out anonymous shell companies. It comes as law enforcement and power groups have sought to streamline the regulatory process for illicit money flows.
The bill would require most companies to report their beneficial owners to the government and allow law enforcement and regulators access to more information. The bill would also allow for new tools to monitor suspicious behavior.
According to Reuters, there has been a global movement of funds by illegal organizations and terrorists in legal ways, and many cases have come to light in recent years that reveal the true nature of these illicit flows. Currently, combating this illegal transfer of funds has become a top priority for policymakers.
According to official sources, the current weakness of U.S. regulations regarding disclosure of company ownership has allowed criminals to use the name of legitimate companies to move money around the world.
The World Bank found in 2011 that each year, the U.S. creates as many new legal companies with anonymous owners as the 41 tax havens combined, with 10 times as many new companies.
The anti-money laundering bill is part of the National Defense Authorization Act (NDAA), which has a budget of $740 billion for fiscal year 2021. The NDAA previously passed the House of Representatives by a vote of 335 to 78 and the Senate on Friday by a vote of 84 to 13.
In addition, if the above-mentioned anti-money laundering bill eventually becomes law, it would allow banks to participate in identifying and tracking potentially illegal conduct.
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