GROUND-BREAKING ANTI-MONEY LAUNDERING REFORM MOVES FORWARD 

October 2022 - This month we revisit the successful passage of the Corporate Transparency Act (CTA) at the end of 2019, something NAC and the advocated for through the Postcard Brigade and directly with members of Congress. Read more on this important first step and and the work still needed for full implementation. This Act requires the US Treasury to write rules implementing its anti-money laundering reform, specifically disclosure of the beneficial ownership of shell companies. In September 2022 Treasury released the first of three final rules in the implementing process to bring this law into force. Anonymous shell companies have been shown to assist kleptocrats and criminals in their illicit activities and are one of the principal ways bad actors access and abuse the Western financial system. The disclosure of beneficial ownership will enhance the ability of law enforcement and government attempts to trace assets, enforce sanctions, and assist other countries in their fight against kleptocracy and corruption. The first final rule covers who needs to report beneficial ownership, what information they are required to disclose, and when they are required to make, or update, disclosures. This is a critical first step and will become mandatory beginning January 1, 2024. The next step from Treasury is to release the second rule, covering the technicalities of the reporting data base and how it will be accessed. NAC is working with the FACT Coalition to advocate for a strong, robust, and accessible data base.