On May 16, 41 business and civil society organizations, including EG Justice, Global Financial Integrity, Global Witness, and American Sustainable Business Council, sent a letter to every member of the U.S. Congress urging them to support the Incorporation Transparency and Law Enforcement Assistance Act. Eight law enforcement organizations have also endorsed the legislation.

In the letter, supporters asked U.S. Senators and Representatives to co-sponsor the legislation which would significantly strengthen U.S. law enforcement’s efforts to combat tax evasion, terrorism, corruption, and financial crimes. The bill, which has been endorsed by the Obama Administration, would require companies to disclose all owners and financial beneficiaries when they incorporate, increasing corporate transparency and making it more difficult to establish anonymous shell companies which corrupt foreign politicians and criminal organizations can use to facilitate money laundering.

According to the U.S. Department of Justice, Teodoro Nguema Obiang Mangue, Equatorial Guinea’s Minister of Agriculture and Forestry, allegedly created multiple shell companies in the U.S. to launder funds that were used to purchase a mansion in Malibu and a Gulf Stream jet, among other things.  A documentary by CNBC, “Filthy Rich,” revealed that many state laws do not ask for the identities of the owners, beneficiaries, and directors of a company before it can be formed.

Read the full letter>>