Kenneth Rijock

Kenneth Rijock

Sunday, October 27, 2013

CONGRESS SITS ON THE MOST IMPORTANT AML LEGISLATION SINCE THE USA PATRIOT ACT


Senate Bill 1465, the Incorporation Transparency and Law Enforcement Assistance Act, has been sitting in the Judiciary Committee since August 1, 2013. For those readers who did not see my earlier article on the subject*, this important legislation has been stalled in Congress for years.

The law:

(1) Requires positive identification of beneficial owners of new corporations or LLCs. Changes of ownership of existing companies must be reported in 60 days.

(2) Mandates the production of passports or US drivers' licenses as proof, and requires that they be verified.

(3) Demands full compliance with this law, as to existing corporations, within a definite deadline.

(4) Basically forbids bearer shares.

(5) provides criminal penalties of three years in prison, and/or a $10,000 fine for violations.

There's much more, but this represents these most important provisions. In my humble opinion, it is the most significant AML legislation since the USA PATRIOT Act of 201. Unless and until beneficial ownership of American corporations comes out of the dark, enforcement of the Money Laundering Control Act of 1987 will never be truly effective.
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*Who is holding up the US Incorporation Transparency Act ?

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