In concert with bipartisan action in the House Financial Services Committee to increase U.S. disclosures related to corporate beneficial owners, a bipartisan group of senators has released draft legislation to do the same and make broad, structural changes to the U.S. anti-money laundering (AML) and counter terrorist financing (CTF) regime. Although different in detail, both bills aim at requiring shell companies to disclose beneficial ownership to ensure that banks, realtors, and others are not unwittingly facilitating criminal activity. Current rules require banks to know their customers, but this is challenging in the absence of binding disclosure requirements at the state-incorporation level.
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