US Bill Would Introduce New Beneficial Ownership Requirements on LLCs

[Spinat]

Sooner or later this will come into place and then all other countries will follow suit. I think it will be difficult to hide in the future, it requires methods that can be more risky. Conversely, it could also be that there will be places that open up new opportunities.

 

[user9823671]

I assume this relates to the piece in the Indy

US passes ‘historic’ anti-corruption law that effectively bans anonymous shell companies​

https://www.independent.co.uk/news/...-bans-anonymous-shell-companies-b1781380.html

The United States has effectively banned anonymous shell companies from operating in the country with the passing of a new anti-corruption law described by campaigners as “historic”.
The new legislation was included in the annual National Defense Authorization Act, which allocates funds to the US military, and was passed by veto-proof majority in Congress on Friday.

Under the new rules, companies will be required to provide “beneficial ownership” information to the treasury department’s Financial Crimes Enforcement Unit. Anonymous companies, which can be used to hide funds illicitly obtained by criminals and corrupt foreign officials, would be effectively banned.
Transparency International, an advocacy group that worked with lawmakers to craft the bill, called the new law “historic” and “one of the most important anti-corruption measures ever passed by the US Congress.”

“It’s a huge step forward in fighting illicit finance at home and around the globe,” said Gary Kalman, the group’s US director. “Simply put, corporate transparency means it will be harder for corrupt leaders and other criminals to hide and move stolen money through secretly-owned corporations.”
Anti-corruption campaigners have lobbied for years to close loopholes that allow criminals to hide money in the US. Last year, the US overtook Switzerland in a global ranking of financial secrecy hotspots. It currently ranks second in the world in the Tax Justice Network’s Financial Secrecy Index 2020, behind only the Cayman Islands.
Corporate secrecy rules have previously made it possible for anyone to create an anonymous shell company, in which they could hide enormous sums of money without being identifiable. Corrupt foreign leaders, cartel bosses, and criminals have all made use of lax US laws to hide their ill-gotten gains.



That will now change. The new Corporate Transparency Act, passed with bipartisan support, requires anyone forming a company in the US to provide their name, date of birth, unique identification number and other information. That information can be shared with law enforcement —including those acting on behalf of a foreign law enforcement agency — as well as for national security and intelligence purposes.
The act also makes “deliberate false statements or willful evasion of its requirements” a federal crime, punishable by up to three years in jail.
Larger companies that employ more than 20 people, have revenues above $5 million and a physical presence in the US, are exempt from the act. Churches, charities and other non-profits are also exempt.
Casey Michel, author of the forthcoming book about money laundering called ‘American Kleptocracy’, said the bill was a victory for anti-corruption efforts not just in the US, but around the world.

“It's difficult to overstate the importance of today's legislation,” he told The Independent, describing it as “the most significant anti-money laundering move the US has taken in decades, and potentially ever.”
“Oligarchs and kleptocrats, gun-runners and cartel heads, wildlife poachers and human traffickers — anyone with a bit of dirty money burning holes in their pocket, really — can no longer turn to American shell companies for their money laundering needs,” he added.
Mr Michel, whose book is due to be published later this year, said that the use of anonymous shell companies in the US had acted as the “building blocks” for corrupt networks around the world, which were able to hide dirty money from investigators and journalists.
“For years, the US — thanks especially to states like Delaware, Nevada, and Wyoming — has acted as the world's biggest provider of anonymous shell companies. Now, thanks to the NDAA's passage, that reality is a thing of the past,” he said.
Donald Trump had originally voted the $740bn defence bill containing the anti-corruption measures. He listed among his objections a requirement for the US military to rename bases named after Confederate leaders and the refusal of lawmakers to include a repeal of a law that provides immunity to social media platforms for content posted on their sites.
He was opposed by his own party colleagues as Republicans joined Democrats to pass the bill by the two-thirds majority required to override the president’s veto.

 

[Martin Everson]

Well they are now sneaking these changes from H.R 2513 into the 2021 National Defense Authorization Act (NDAA). One way or another a US beneficial register is happening....lol.

Seems I was right yet again when I said the above

Information can be shared with foreign law enforcement agencies and that is all that matters. Also giving false information is a Federal crime . Good luck to anyone using a US company to evade CRS. Foreign taxman gonna be doing some nice John Doe summons of data like they have done already for Amex etc .

 

[JackAlabama]

Seems I was right yet again when I said the above

Information can be shared with foreign law enforcement agencies and that is all that matters. Also giving false information is a Federal crime . Good luck to anyone using a US company to evade CRS. Foreign taxman gonna be doing some nice John Doe summons of data like they have done already for Amex etc .

Yeah.

Do we have these base 3 options:

1) pay what they tell you to pay if you want to live in communist eu and similar places. This is for the middle class in terms of wealth and for those who do not want to move to 2) and cannot yet afford 3).
2) move to one of the 45 or so underdeveloped nations from the crs list if 3) is too expensive and or your (small) business is somewhat special and needs certain flexible solutions. This is for primarily those who just start out and have limited funds, and or are overly adventurous.
3) move to tax heaven / tax friendly place and do really live there. An especially nice option if you have 7+ or even 8 digits as you can afford all the nice things there.

 

[Martin Everson]

I would choose option 3 if its within peoples pocket or explore option 2. Option 1 is accepting defeat.

This news is not gonna make much waves in corrupt developing countries where leaders are worried about their own stolen money being discovered behind US shell companies. This move is likely only to affect developed places like EU, Canada, Australia etc where there is real rule of law and check and balances.

P.S Get out the EU while you still can .

 

[JackAlabama]

I would choose option 3 if its within peoples pocket or explore option 2. Option 1 is accepting defeat.

This news is not gonna make much waves in corrupt developing countries where leaders are worried about their own stolen money being discovered behind US shell companies. This move is likely only to affect developed places like EU, Canada, Australia etc where there is real rule of law and check and balances.

aP.S Get out the EU while you still can .

100% agreed.

It can also be a combination of 2) and 3) to some extent.
As someone living in 2), I often drive thru areas where they sell houses for millions of $ where the average dude makes a 200$ a month when he is lucky. So, I doubt someone will even mention US shell companies

 

[bisk]

Larger companies that employ more than 20 people, have revenues above $5 million and a physical presence in the US, are exempt from the act. Churches, charities and other non-profits are also exempt.

That's hilarious!

 

[galadrel]

ridiculously corrupted american government makes a bill against corruption, paradox.

 

[JackAlabama]

ridiculously corrupted american government makes a bill against corruption, paradox.

It is aactually Way Better than a comedy show. Just that if shits all over the place and messes people lifes up.

 

[Risehigh]

That's hilarious!

Actually it's nice, starting a church isn't that hard, and the irs does not f**k with churches

 

[myshufflemix]

P.S Get out the EU while you still can .

this is not the first time I see you post this here on offshorecorptalk! Are you serious, do you really believe we will be robots of the EU they can control like that?

 

[ih8socialism]

The worst things,

this is not the first time I see you post this here on offshorecorptalk! Are you serious, do you really believe we will be robots of the EU they can control like that?

Yes, EU gets worse and worse can‘t imagine where we will be in 2030. They need more and more money and guess from who they will take it

 

[myshufflemix]

So we will be close to the very long post Admin posted in the mentor group
https://www.offshorecorptalk.com/threads/investment-matrix-discussion-for-doomsday.28868/
which is a copy but very interest reading.

Maybe I should consider to relocate to the Bahamas and drink Beer all day long with @Martin Everson and who else will enter the Island

 

[JackAlabama]

this is not the first time I see you post this here on offshorecorptalk! Are you serious, do you really believe we will be robots of the EU they can control like that?

I also sign up on this. Also the eu satellite states need to be considered e.g. Georgia and the likes.

 

[Martin Everson]

this is not the first time I see you post this here on offshorecorptalk! Are you serious, do you really believe we will be robots of the EU they can control like that?

Yes I have been posting this for years on here. You will see every ounce of your liberty and wealth disappear into the EU black hole of EU bureaucracy and debt.

I mentioned before on here that EU countries national debt will be divided among its citizens. Those wanting to leave would need to pay off their share of the national debt before all ties are cut. The EU may say those leaving the sinking ship have derived an advantage from the government spending in that country that needs to be repaid on an individual level. Wait and see....lol.

 

[ih8socialism]

Yes I have been posting this for years on here. You will see every ounce of your liberty and wealth disappear into the EU black hole of EU bureaucracy and debt.

I mentioned before on here that EU countries national debt will be divided among its citizens. Those wanting to leave would need to pay off their share of the national debt before all ties are cut. The EU may say those leaving the sinking ship have derived an advantage from the government spending in that country that needs to be repaid on an individual level. Wait and see....lol.

I am scared that they will take this even further. Something like global taxation, big one time tax payments and so on, even when I am living outside of the EU, they can still kinda force me to pay for something back home if they know exactly what I got.

Quite frankly, I am very worried what is happening to my home country (Germany) right now, I don't know where all these socialist and communist lovers coming from. I mean something has to change sooner or later because most of the simple jobs will be gone within the next 20 years, but socialism is not the answer lol

 

[JackAlabama]

Yes I have been posting this for years on here. You will see every ounce of your liberty and wealth disappear into the EU black hole of EU bureaucracy and debt.

I mentioned before on here that EU countries national debt will be divided among its citizens. Those wanting to leave would need to pay off their share of the national debt before all ties are cut. The EU may say those leaving the sinking ship have derived an advantage from the government spending in that country that needs to be repaid on an individual level. Wait and see....lol.

and only the nasty rich would ever dream of leaving the new green, fair, genderneutral utopia. So it is only in the best interest that they pay their fair share, isnt it?

 

[JackAlabama]

I am scared that they will take this even further. Something like global taxation, big one time tax payments and so on, even when I am living outside of the EU, they can still kinda force me to pay for something back home if they know exactly what I got.

Quite frankly, I am very worried what is happening to my home country (Germany) right now, I don't know where all these socialist and communist lovers coming from. I mean something has to change sooner or later because most of the simple jobs will be gone within the next 20 years, but socialism is not the answer lol

I am also worried about germany and what is happening there, even though I have 0 ties to it. But it seems to steer the greater continent to quite some extent.

 

[ih8socialism]

and only the nasty rich would ever dream of leaving the new green, fair, genderneutral utopia. So it is only in the best interest that they pay their fair share, isnt it?

The rich wouldn't be that much affected IMO since they have the resources for proper setups, buying passports and so. on. But middle class and people with a low 7 figure amount would prolly be the group they go after.

 

[Martin Everson]

and only the nasty rich would ever dream of leaving the new green, fair, genderneutral utopia. So it is only in the best interest that they pay their fair share, isnt it?

Yup the millionaires and billionaires of Europe will pay there share....all 10 euros of it at most . They will argue they are the innovators and job creators. The rich are like cats that always land on their feet.

I am scared that they will take this even further. Something like global taxation, big one time tax payments and so on, even when I am living outside of the EU, they can still kinda force me to pay for something back home if they know exactly what I got.

Global tax and minimum tax rates are already here. The EU forced "encouraged" some Caribbean countries and even Andorra to implement this BS.

Quite frankly, I am very worried what is happening to my home country (Germany) right now, I don't know where all these socialist and communist lovers coming from.

Germany will likely champion such a move. The ultra rich have very good structures to pass down wealth and earn without feeling the effects of high tax. The rich simply don't earn direct income and earn mostly via capital gains on shares and investment which is taxed at a much lower rate and can be largely offset with structured investment loses. The system is setup to hammer the middleclass and look after the poor socialist voting lower classes who the politicians (controlled by rich) need to stay in power.

If Germany wanted to go after the rich they would make the Capital gains tax rate (26.375%) the same as the highest income tax rate (45%) and job done.