A law prohibiting the establishment of a 'paper company' that is a hotbed for asset hiding and money laundering is passed in the United States
The Anti-corruption law, which effectively prohibits anonymous
US passes'historic' anti-corruption law that effectively bans anonymous shell companies | The Independent
https://www.independent.co.uk/news/world/americas/us-passes-historic-anti-corruption-legislation-that-effectively-bans-anonymous-shell-companies-b1781380.html
A paper company is a company that exists in the registration but has no actual business activities. In some countries and regions, a large number of paper companies have been established because corporate confidentiality rules allow anonymous investment in the establishment of a company. For example, the Panama Papers leaked in April 2016 revealed that many companies had set up paper companies in tax havens, which were hotbeds for tax savings and money laundering in legal threshing. ..
'Panama Papers' that reveals how huge companies and wealthy people are hiding huge amounts of money in tax havens etc. will be released --GIGAZINE
By Thibault Houspic Follow
Also, the Olympus scandal discovered in 2011, where Olympus used a paper company to hide huge losses, was set in the Cayman Islands off the Caribbean Sea, known as tax havens .
I went to the tax-free island Cayman, the stage of the Olympus huge loss concealment case --GIGAZINE
The Tax Justice Network , a non-governmental organization that investigates tax evasion issues and money laundering, publishes a financial secrecy index ranking that shows how easy it is for tax evasion and money laundering in each country's legal and financial systems. In this ranking, the Cayman Islands are No. 1, the United States is No. 2, and Switzerland is No. 3, and it is said that the United States has many top-class paper companies in the world. Japan's financial secrecy index ranking was 7th.
However, with the enactment of the Anti-Corruption Law, anyone setting up a company in the United States is required to register their name, date of birth, and unique identification number. This registration information is shared with law enforcement agencies and you can be sentenced to up to three years' imprisonment for registering false information.
Anti-corruption legislation also requires companies to provide the US Treasury Department's Financial Crime Control Department with information about their ' beneficial ownership .' As a result, companies are virtually prohibited from owning and using paper companies in secret, making it difficult to carry out tax evasion and money laundering as before.
'The United States, especially Delaware, Nevada, and Wyoming, has one of the largest number of paper companies in the world,' said Casey Michelle, a writer familiar with money laundering. However, anti-corruption laws have been passed. That makes that reality a thing of the past. '
Transparency International , an organization that worked to enact anti-corruption legislation, calls the anti-corruption law 'one of the most important anti-corruption measures passed by the US Congress.' 'This is a big step forward in combating illegal finance in the country and around the world,' said Gary Kalman, director of Transparency International's US branch. Simply put, tax evasion and money laundering using paper companies. Means that will be more difficult. '
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