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Treasury Scales Back Scrutiny of U.S. Shell Companies
The New York Times • • nation
Key Points:
- The Trump administration is permanently halting the collection of ownership data on private American companies required under the 2021 Corporate Transparency Act, which aimed to combat money laundering and drug trafficking through shell companies.
- This decision follows lobbying efforts arguing that the financial reporting requirements imposed undue burdens on businesses.
- Treasury Secretary Scott Bessent stated that the move removes a burdensome requirement for law-abiding businesses without compromising national security.
- The law targeted shell companies, which often lack physical operations and are used to hide financial assets anonymously, but the data collection on "beneficial owners" has now been stopped for U.S. companies while foreign companies must still report ownership information to FinCEN.
