Reporting beneficial owners of certain US companies: observations relevant to private client structures internationallawoffice.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from internationallawoffice.com Daily Mail and Mail on Sunday newspapers.
Last month’s
post explained how setting up a dummy company can help seal a deal. Unfortunately, dummy companies can be used for far more nefarious purposes, including money laundering, terrorism financing, and tax fraud. For example,
60 Minutes revealed how high-end real estate has been snatched up by dummy companies linked to foreigners with ties to organized crime, despotic regimes, or both.
They were able to use dummy companies to anonymously move money into the United States, because most States do not require organizers of corporations or LLCs to disclose their true owners. That’s the case in Texas. The certificate of formation for a
UExpress uexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from uexpress.com Daily Mail and Mail on Sunday newspapers.
By the end of March, the European Commission wants to present a revised version of the so-called non-financial reporting directive (NFRD). A coalition of European NGOs is calling for greater transparency and stricter reporting requirements for companies in sustainability matters. EURACTIV Germany reports.
Based on several studies, the Alliance for Corporate Transparency (ACT) is calling on the EU to increase and more precisely define the reporting requirements for companies.
Under the the NFRD, European companies with more than 500 employees are currently required not only to give an account of their financial situation, but also to provide public information on certain non-financial matters.