US passes ‘historic’ anti-corruption law that effectively bans anonymous shell companies

The United States has effectively banned anonymous shell companies from operating in the country with the passing of a new anti-corruption law described by campaigners as “historic”.

The new legislation was included in the annual National Defense Authorization Act, which allocates funds to the US military, and was passed by veto-proof majority in Congress on Friday.

Under the new rules, companies will be required to provide “beneficial ownership” information to the treasury department’s Financial Crimes Enforcement Unit. Anonymous companies, which can be used to hide funds illicitly obtained by criminals and corrupt foreign officials, would be effectively banned.

Transparency International, an advocacy group that worked with lawmakers to craft the bill, called the new law “historic” and “one of the most important anti-corruption measures ever passed by the US Congress.”