Introduction
Individuals worldwide have set up shell or fictious companies in the U.S. to generate U.S. transactions in real estate, banking, and purchase initially legitimate business entities (which ultimately develop an illicit purpose) and engage in other transactions. This is the case for U.S. citizens pursuing fraudulent acts as well as those of other nationalities. Recently, some individuals from sanctioned countries created increased attention to the drug trafficking, fraud, funding of domestic violence, support of weapons of mass destruction, money laundering, asset hiding or other illicit activity in their shell or artificial companies.
The U.S. Treasury, Financial Crimes Enforcement Network (FinCEN) has issued a requirement starting January 1, 2024, requiring beneficial owners to disclose their ownership of companies. It is strongly believed this will be a critical aid to law enforcement, tax investigations, intelligence, national security, federal functional regulators, and result in a reduction in illicit activity.
For more information, please contact:
Kelly Jordan, CPA, JURISPRUDENCE IN INTERNATIONAL TAX LAW, MBA, MBA, CFS, CITA, CTPS
Tax Director
kjordan@pkfmueller.com
+1 847 350 1504
