As part of its Financial Sector Assessment Program for the United States, a regulatory review conducted every five years, the International Monetary Fund on Tuesday also issued a report focused on efforts to prevent money laundering and the financing of terrorism. In it, the U.S., despite “significantly strengthening its AML/CFT regime,” is chided for failing to address concerns related to shell companies and the lack of transparency regarding beneficial ownership information for U.S. corporations and trusts.
“The relative ease with which U.S. corporations can be established, coupled with their perceived credibility internationally, creates the potential for U.S. corporations to be misused for the laundering of the proceeds of foreign predicate crimes,” the report says. “Foreign persons may find it convenient to create a U.S. corporation and use it for the laundering of the proceeds of criminal activities committed outside the United States, including foreign tax evasion.”
