Increase Transparency of Legal Entities Formed in the United States (US0036)

The United States has been working closely with partners around the world to combat the criminal misuse of businesses, shell companies, and front companies. These legal entities are used to access the international financial system and facilitate financial crime, while masking the true identity of illicit actors. These legal entities are also used by individuals and companies to shelter assets and evade taxes. Enhanced transparency of companies formed in the United States will help to prevent criminal organizations from obscuring who really benefits from the businesses they operate, help to address tax avoidance, and also help developing countries to combat corruption when criminal actors look to illicitly deposit their money abroad. To promote transparency in company ownership, the Administration will:
-Advocate for Legislation Requiring Meaningful Disclosure. The White House will continue to publicly advocate for legislation requiring disclosure of meaningful information at the time a company is formed, showing not just who owns the company, but also who receives financial benefits from the entity.
-Establish an Explicit Customer Due Diligence Obligation for U.S. Financial Institutions. In 2014, the Administration will work to enact a rule requiring U.S. financial institutions to identify the beneficial owners of companies that are legal entities. The Treasury Department is currently engaged in rulemaking to clarify customer due diligence requirements for U.S. financial institutions. The agency has received public comments through an Advance Notice of Rulemaking and also hosted several stakeholder roundtables.