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Trump team opts to keep US shell companies in the shadows
Key Excerpts from Article on Website of Quincy Center for Responsible Statecraft
Posted: April 22nd, 2025
https://responsiblestatecraft.org/arms-trade-2671753399/
On March 21, Treasury Secretary Scott Bessent announced that U.S. shell companies and their owners can once again conceal their identities — a move critics warn could weaken national security and spur illicit financial activity that puts the American public at risk. Treasury’s initial beneficial ownership information (BOI) disclosure requirement for all companies with less than 20 employees garnered bipartisan support and Trump’s approval during his first administration, but it was short-lived. Officially brought into force last January 2024, and then stymied by lawsuits, the requirement passed its final legal roadblock in February 2025 — only to be shelved a month later by the administration. Now, when a U.S. citizen sets up a shell company in the U.S., they do not have to disclose their identity or the identities of the company's “beneficial owners,” or the individuals who profit from the company or control its activities. American beneficial owners of foreign shell companies that register in the U.S. have been granted the same anonymity. Under the latest limited regulation, only non-American owners will be required to register with the U.S. government. U.S. shell companies have been successfully used as cover for illegal arms sales for decades. Hints of a business's true breadth and depth only emerge when a trafficker is apprehended, such as the case of Pierre Falcone who used secret accounts in Arizona to hide his proceeds from arms trafficking to Angola.
Note: For more along these lines, read our concise summaries of news articles on corruption in government and in the corporate world.
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