Recommendation
Congress should require corporate data transparency.
Details
Corporate registration rules in the United States typically require companies to disclose their legal owners, but not their “beneficial owners,” who influence and profit from a shell company’s transactions and can hide behind complicated, opaque ownership layers, making shell corporations attractive covers for illicit financial activity, including tax evasion, money laundering, evading sanctions, and financing criminal activity. Because of this, the United States is the third-biggest tax haven in the world, behind only Switzerland and Hong Kong. Congress should pass legislation requiring that all states collect corporate beneficial-ownership data and make it easily accessible to regulators and the public by publishing it online in open and machine-readable formats.
Keep reading:
▪ Daniel Castro, Joshua New, and Matt Beckwith, “10 Steps Congress Can Take to Accelerate Data Innovation” (ITIF, Center for Data Innovation, May 2017), http://www2.datainnovation.org/2017-data-innovation-agenda.pdf.