Push to Include Bipartisan Corporate Transparency Act in NDAA

In an October 7, 2020 letter to the House and Senate Armed Services Committee, a diverse group of organizations who have been impacted by money laundering, fraud, and counterfeiting came together to support the inclusion of the Corporate Transparency Act (CTA) in the NDAA for this year.

This provision would allow the collection of beneficial ownership information by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network.

The coalition behind the letter, which consists of organizations like OxFam, American Bankers Association, the National Association of Assistant U.S. Attorneys, and Transparency International, claims that anonymous companies cause abuse and devastation in a variety of ways. For example, those in law enforcement often must drop charges made against opioid distributors because they hide behind anonymous companies.

Designer businesses and labels lose millions of dollars when criminals counterfeit their products and then sell them at a significantly lower price, the letter states. Anti-corruption groups work to expose corrupt public officials who hide their bribes in anonymous companies. The letter lists other impacts anonymous companies have on various facets of American life.

Current anti-money laundering laws in the United States are archaic and outdated, according to the letter signatories.

“These outdated rules, according to the Financial Action Task Force, result in significant gaps in our anti-money laundering laws. The real-life consequences are alarming. It is long past time to bring our laws into the modern era,” states the letter.

The CTA which is included in the House version of the NDAA offers solution to these pervasive issues while revitalizing existing anti-money laundering laws and closing loopholes in the financial system.