Members of Congress introduced bipartisan legislation to require anonymous shell companies to disclose their beneficial owners in an effort to uncover tax evasion, money laundering, terrorism financing and other crimes.
Rep. Carolyn B. Maloney, D-N.Y., joined together with Peter King, R-N.Y., to introduce the Corporate Transparency Act in the House, while Sen. Chuck Grassley, R-Iowa, and Sheldon Whitehouse, D-R.I., teamed up to introduced companion legislation, the True Incorporation Transparency for Law Enforcement (TITLE) Act, in the Senate.
The bill would direct the Treasury Department to issue regulations requiring corporations and limited liability companies that have been formed in a state that does not already require basic disclosure to file information about their beneficial owners. If a state elects not to collect beneficial ownership information, then the Treasury would collect beneficial ownership information as a backup. Entities would have to provide the beneficial owners’ name, current address,