Written by Jubilee USA Network   

Representatives Caroline Maloney (D-NY) and Peter King (R-NY) announced legislation to stop criminals from using US-based "anonymous shell companies" to launder money. Senator Sheldon Whitehouse is expected to join the Representatives in introducing the Incorporation Transparency and Law Enforcement Assistance Act. The bill would allow law enforcement to access ownership information for certain corporate entities which are currently created anonymously and facilitate a broad range of criminal activities. The bill will be officially introduced February 4 and Representative Maloney will likely speak about the bill on the House floor within the next 24 hours.

"Anonymous shell companies hide crimes like human trafficking and allow dictators to steal from their people," stated Eric LeCompte, Executive Director of the religious development group Jubilee USA. "This legislation helps developing countries and brings more sunshine into this dark financial world."

Anonymous companies contribute to the nearly $1 trillion that leaves developing countries each year through crime and corruption. Sub-Saharan Africa loses approximately $50 billion each year, fueling a rise in debt across the continent. Teodorin Obiang, the son of Equatorial Guinea's dictator, used anonymous shell companies to purchase a mansion in California, a fleet of sports cars and Michael Jackson memorabilia with money stolen from his country's treasury. More than 75% of Equatorial Guinea's population lives in poverty. The United States is the second easiest country in the world for setting up anonymous companies according to a 2012 academic study from Griffith University.

The bill follows a year-long House of Representatives Terrorism Financing Task-force that focused heavily on anonymous companies. On January 31, the CBS show 60 Minutes aired an investigation by corruption watchdog Global Witness that filmed lawyers in New York City offering assistance to an under-cover investigator posing as a representative of a corrupt foreign official wanting to purchase real estate in New York.

Crimes connected to anonymous companies include human trafficking, drug trafficking, medicare fraud, terrorism, corruption and weapons trafficking. Infamous weapons dealer Viktor Bout, the subject of the Nicholas Cage film The Lord of War, used anonymous companies based in Delaware, Florida and Texas to sell arms that fueled conflict around the world. A Ukrainian firm used an anonymous company in Oregon to overcharge Ukraine's government for vaccines.

"The United States needs to be a beacon of transparency," noted LeCompte. "I'm grateful to the Republicans and Democrats who came together today to introduce this important bill."

Jubilee USA Network is an alliance of more than 75 US organizations and 550 faith communities working with 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org