November 4, 2009
Clark Gascoigne, +1 202 293 0740 ext. 222
Expert Will Urge Senate to End U.S. Corporate Secrecy, Help Law Enforcement Fight Money-Laundering, Terrorism
WASHINGTON, DC – Global Financial Integrity (GFI) Advisor and Tax Justice Network – USA (TJN-USA) Chairman Jack Blum will testify tomorrow morning before the U.S. Senate Committee on Homeland Security and Government Affairs in support of S. 569, the Incorporation Transparency and Law Enforcement Assistance Act.
Mr. Blum, the former Head of the United Nations Experts Group on Asset Recovery and a former investigator for the Senate Committee on Foreign Relations Subcommittee on Narcotics, Terrorism, and International Operations, will stress both the economic and national security benefits of shutting down US shell corporations.
“The single most important tool in the toolkit of people trying to hide money from law enforcement and tax collection is the anonymous shell corporation. These shell corporations have no physical place of business, use nominee officers and directors, and as a rule do no business in the place of incorporation,” said Mr. Blum in his prepared testimony before the Committee. “Their sole purpose is hiding where money is, who controls it, and where it is moving, from law enforcement and tax collectors. These shell companies should not be allowed remain anonymous.”
“States that offer corporations to individuals without insisting on information on beneficial ownership are undermining the efforts of law enforcement to prevent crime, recover stolen assets and collect tax,” added Blum.
Mr. Blum, TJN-USA, and GFI join a long list of civil society organizations supporting the Senate legislation including the Federal Law Enforcement Officers Association and the Fraternal Order of Police.
Thursday’s hearing will take place at 10 a.m. in Room 342 of the Dirksen Senate Office Building. Witnesses from the Departments of Justice and Treasury are also expected to testify.
Click here for Mr. Blum’s full remarks and additional materials from Global Financial integrity in support of the Incorporation Transparency and Law Enforcement Act of 2009.