WASHINGTON—The Treasury Department’s quest to build a company ownership database meant to battle dirty money has hit a roadblock, with a key national banking group calling on Treasury withdraw its “fatally flawed” plan.
In a letter submitted to Treasury, the American Bankers Association said the Treasury’s latest proposed rule for the registry would so “sharply restrict bankers’ access to company ownership data that it would be useless to the country’s sprawling financial sector,” according to a report by the International Consortium of Investigative Journalists.
“The industry association’s comments, co-signed by 51 state-level banking associations, are a stark reversal for a group that had previously been a key supporter of the law mandating the database’s creation. The group’s comments do not question the overall registry but rather focus on the Treasury’s plan for implementing it,” the Consortium stated.
Added the Consortium, “Experts say the creation of a registry of company owners is crucial for unmasking the people behind anonymous shell companies that criminals and terrorists use to hide and transfer illicit cash. Advocates have consistently flagged the U.S. financial system as notoriously opaque and vulnerable to money laundering.”
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