Passed as Part of National Defense Authorization, New Law Requires Disclosure of Beneficial Owners; Experts at The Sentry are available for interview and analysis.
January 1, 2021 (Washington, D.C.) – Today, the US Congress passed the Corporate Transparency Act, a groundbreaking anti-corruption law that cracks down on anonymous shell companies. Attached to the National Defense Authorization Act that was passed into law after overriding a presidential veto, the CTA requires most companies to report to the US Department of the Treasury’s Financial Crimes Enforcement Network the name, address, date of birth and an identification number of the real, natural person who owns and controls an entity at the point of formation.
John Prendergast, Co-Founder of The Sentry, said: “Anonymous shell companies have provided violent and corrupt actors a getaway car for all kinds of illicit schemes, from looting to fraud to tax evasion to sanctions busting. Congress has given the US government a critical instrument to finally address one of the principal enablers of money laundering through the US financial system.”
Ian Schwab, Director of Regional Policy and Advocacy at The Sentry, said: “The passage of beneficial ownership legislation is a major bipartisan accomplishment. Congress should be applauded for its focus in recent years on addressing corruption and targeting kleptocrats. We hope this momentum and partnership from across the political spectrum will continue in the next congressional session.”
Megha Swamy, Deputy Director of Illicit Finance Policy at The Sentry, said: “Anonymous shell companies are a cornerstone of grand corruption. Today, the US has taken a crucial step in making it harder for corrupt leaders, their enablers, and other nefarious networks to hide their ill-gotten fortunes.”
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About The Sentry
The Sentry is an investigative and policy team that follows the dirty money connected to African war criminals and transnational war profiteers and seeks to shut those benefiting from violence out of the international financial system. By disrupting the cost-benefit calculations of those who hijack governments for self-enrichment, we seek to counter the main drivers of conflict and create new leverage for peace, human rights, and good governance. The Sentry is composed of financial investigators, international human rights lawyers, and regional experts, as well as former law enforcement agents, intelligence officers, policymakers, investigative journalists, and banking professionals. Co-founded by George Clooney and John Prendergast, The Sentry is a strategic partner of the Clooney Foundation for Justice.
Learn more at www.TheSentry.org.