Congressional delegation supports federal solution to lack of info on “shell corporations”

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US Capitol DomeThe state’s congressional delegation came out in support an Obama Administration plan calling for legislation that would require   companies to report beneficial ownership information to the Treasury Department and law enforcement.

Delaware has come under fire for not requiring companies to provide that information when companies incorporate in the state.

The delegation and state officials have called for a federal solution that would treat states equally and would not allow a state to have an advantage.  Nevada has been mentioned as a state that might get incorporation business if Delaware added such requirements.

The issue has moved to center stage with the release of the “Panama Papers” that have linked shell corporations to dictators, drug lords and others seeking to use shell companies in hiding assets or laundering money.

“I support the Obama’s administration’s steadfast commitment to strengthening our country’s efforts to combat international financial crimes, and I share the administration’s objective to ensure that our law enforcement community has the information needed to crack better down on terrorist financing, money laundering, and tax evasion,” said U.S.  Sen. Tom Carper,  a member of the Senate Finance Committee and top Democrat on the Senate Homeland Security and Governmental Affairs Committee. “I’ve been working closely with the Delaware delegation and my colleagues in Congress on legislation that would require companies to report ownership information and allow law enforcement to access that information. For our country to get serious about improving our efforts to tackle financial crimes, Congress must act.”

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“I agree with my colleagues and the Obama Administration that more must be done to prevent shell companies from being used to facilitate the financing of organized crime, supporting terrorism, or engaging in sophisticated money laundering operations,” said  Sen. Chris  Coons, a member of the Senate Judiciary Committee. “I look forward to working with the President, my colleagues in the Senate, and Delaware officials to ensure that new legislation gives law enforcement the tools to target and prevent bad actors.”

“I appreciate the President’s commitment to addressing money laundering and terrorist financing,” said Cong. John Carney, member of the Financial Services Committee. “There’s no doubt that Congress can and should do more to ensure that law enforcement has timely access to the information they need to take down bad actors. As a member of the Financial Services Committee, I have been closely following the actions of the Task Force to Investigate Terrorism Financing, and I am drafting legislation in the House to address this issue. I will continue to work with my colleagues on both sides of the aisle to act on this as soon as possible.”

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