ABA slams new public corporate register proposals in USA

The U.S. Department of the Treasury has been eager to establish a corporate ownership registry in its battle against dirty money. Yet the American Bankers Association (ABA) has described what’s being floated under the Corporate Transparency Act (due to come into force in the US next year) as “fatally flawed”.

In fact, the ABA said: “The proposal creates a framework in which banks’ access to the Registry will be so limited that it will effectively be useless, resulting in a dual reporting regime for both banks and small businesses.”

This is a damning indictment not only of the FinCEN proposal, but also centres on the main gripe many have with publicly-accessible corporate registers such as the UK’s Companies House: that they are often full of unchecked and unverified information.

Read Martin Kenney on the The FCPA Blog for more.