Today, Rep. Carolyn B. Maloney (D-NY), Chairwoman of the Committee on Oversight and Reform, issued the following statement after the Financial Crimes Enforcement Network (FinCEN) announced rulemaking to implement the Corporate Transparency Act. This legislation, which she authored and passed into law in December 2020, requires companies to disclose their true, beneficial owners at the time the company is formed to prevent bad actors from using anonymous shell companies to thwart law enforcement and hide their illicit activities.
When implemented, the Financial Crimes Enforcement Network (FinCEN) will be better able to protect U.S. national security interests by tracking down those who use shell companies and other corporate structures to hide their identities. The rule will become effective in January 2024.
"Today's rule is a great step forward in the fight to combat illicit financing, protect our national security, and provide much needed transparency in our financial system," said Rep. Maloney. "Carrying out the Corporate Transparency Act will make it easier for law enforcement to crack down on financing which supports terrorism, money laundering and organized crime. So-called "beneficial owners' who profit from hiding their investments in the U.S. have been protected a lack of reporting. With this rule, no longer will malicious actors who have been using shell corporations for years to protect beneficial owners hide behind a wall of secrecy. I am also proud that FinCEN has designed its enforcement of my bill to punish criminals and minimize burdens on small business."