New Legislation Cracks Down on Shell Companies and Money Laundering - Make Money Online

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New Legislation Cracks Down on Shell Companies and Money Laundering

U.S. senators recently declared their commitment to protecting U.S. national security, saying the time is right to reform the laws for combating illicit finance. Currently, the U.S. is ranked the second-worst in the world for its high levels of secrecy and offshore activities, according to the Tax Justice Network’s Financial Secrecy Index.


It has become such a huge problem that the Financial Action Tas Force (FATF) has identified the United States as an outlier among developed nations for failing to disclose and track shell company ownership. Over the years, the U.S. has become one of the go-to destinations for the creation of anonymous shell companies. This has allowed traffickers, terrorists, money launders and other criminals the ability to operate undetected.

To complicate the situation further, the banking laws that were designed to detect and combat money laundering and illicit financial activities haven’t been updated in decades. Regulators and law enforcement are trying to fight 21st century threats and problems with 20th century tools. The new legislations being drafted would seek to change and improve this.

Essentially, the bipartisan legislation would require U.S. shell companies to report their true owners so that law enforcement can better track and penalize any criminal activity. I would also modernize our antiquated money-laundering laws, ensuring both the public and private sector resources are used where they matter most. Finally, it would facilitate information sharing and upgrade the technology used to fight and prevent threats.

What the Crackdown Means for Business Owners

Legitimate businesses here in the U.S. have a lot to gain from a crackdown on shell companies and money laundering. These changes will include stricter protocols for protecting personal information and stiff penalties for unauthorized disclosures of ownership information or personal data. This will not only protect consumers’ information, but it will also reduce the risks to reputational damage and revenue losses for businesses.

Also good news, this crackdown would not place an increased burden on business owners. Reporting information would not involve hours of new paperwork or other costly obligations. The proposed bill specifically mandates that the new reporting obligations be well-tailored and integrated within existing reporting requirements.

How a High Risk Business Loan Can Help

Unfortunately for many business owners, this legislation comes too late. Many industries have long been considered high risk for the potential for fraud, chargebacks and other threats. This has made it incredibly difficult for legitimate, honest business owners to keep their company running smoothly. Finding funding from a traditional lender, for example, is next to impossible. Banks simply do not want to work with industries that put them in a vulnerable situation.

Fortunately, high risk specialists like First American Merchant have stepped in to offer a cash solution. High risk business loans, for example, offer the working capital your business needs in as little as 24 hours. The application itself requires minimal documentation and can be completed online in a matter of minutes. If you need quick cash, consider what a high risk business loan can do for your company.
New Legislation Cracks Down on Shell Companies and Money Laundering New Legislation Cracks Down on Shell Companies and Money Laundering Reviewed by RAWAT on 3:14 AM Rating: 5