U.S. Rule Would Force Banks to Identify Shell-Company Owners
The White House’s Office of Management and Budget earlier this week accepted for final review a rule that would force banks to identify the owners of companies behind shadowy financial transactions, such as the firms revealed in the Panama Papers scandal or the ones used to buy real estate. It would close a loophole that critics say allows criminal money into the U.S. financial system as the existing rules don’t require financial institutions to learn the true owner of a corporate entity, which critics have long said encourages corrupt officials across the globe to create shell companies to stash their funds in the U.S. financial system for safekeeping
The OMB review is the last step before a rule becomes final.
Original Story at WSJ.