Earlier This Month, Congress Passed the Corporate Transparency Act to End the Nationwide Proliferation of Anonymous Shell Companies
Manhattan District Attorney Cy Vance, Jr. today urged the Biden administration to pursue bold new measures to help prosecutors further combat money laundering and financial fraud now that Congress has passed the Corporate Transparency Act, a “laudable first step” in this fight.
In a New York Daily News op-ed, D.A. Vance proposed two specific actions necessary to achieve greater incorporation transparency: the Treasury Department promulgating due diligence rules for all gatekeepers to the financial system and making Geographic Targeting Orders (GTOs) permanent and nationwide. Due diligence rules require gatekeepers to first confirm an individual’s identity before assessing suitability and risk, while GTOs mandate similar verification for individuals behind shell companies used in all-cash purchases of residential real estate. These actions are essential to stopping financial crimes that undermine our shared sense of justice, warp our city’s housing market, and threaten our national security, D.A. Vance wrote.
D.A. Vance also celebrated the efforts of members of Congress and advocacy groups, such as Transparency International, responsible for the passage of the Corporate Transparency Act, which “will prove an invaluable asset to law enforcement agencies as we ‘follow the money’ to build economic crimes cases.” This rare piece of anti-corruption legislation sends a “clear message to our global allies that we are serious about preventing bad actors from stashing ill-gotten gains on American shores,” he added.
The op-ed can be viewed in full here.