Anti-corruption enforcement capacityinstitutional
0.60Strengthened60% impact weight
Mandatory beneficial-ownership transparency removes a major shield used by illicit finance, strengthening enforcement capacity.
legislationverifiedconfidence: medium
US Corporate Transparency Act enacted, mandating beneficial-ownership disclosure
The Corporate Transparency Act became law on 1 January 2021 as part of the Anti-Money Laundering Act of 2020 within the National Defense Authorization Act for Fiscal Year 2021, after Congress overrode a presidential veto. The law requires many US companies to disclose their true 'beneficial owners' to the Financial Crimes Enforcement Network (FinCEN), aiming to end the use of anonymous shell companies to launder money and hide illicit finance. Representative Carolyn Maloney was the long-time lead sponsor of the underlying transparency legislation, working for years with the anti-corruption FACT Coalition.
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The Corporate Transparency Act became law on 1 January 2021 as part of the Anti-Money Laundering Act of 2020 within the National Defense Authorization Act for Fiscal Year 2021, after Congress overrode a presidential veto. The law requires many US companies to disclose their true 'beneficial owners' to the Financial Crimes Enforcement Network (FinCEN), aiming to end the use of anonymous shell companies to launder money and hide illicit finance. Representative Carolyn Maloney was the long-time lead sponsor of the underlying transparency legislation, working for years with the anti-corruption FACT Coalition.
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