Global financial crime—including international tax evasion, money laundering, and grand corruption—poses an existential threat to U.S. national security. It stymies economic growth, pushing out business and damaging American investment opportunities. It leads to income inequality and the misallocation of public goods, causing political instability and disorder. It bolsters support for violent non-state organizations, providing an avenue for criminals and terrorists to fund their activities.
Following revelations of widespread financial crime revealed by the leaks of the Panama Papers, the Obama Administration and the Treasury Department announced a new “Customer Due Diligence” rule aimed at combating offshore tax havens. This rule requires financial institutions to report owners of foreign companies. The Treasury Department also proposed “Beneficial Ownership” legislation that would make it mandatory for some foreign-owned companies to acquire a tax identification number (TIN) from the Internal Revenue Service. While these policies are a