Money laundering thriving in U.S.?
USA Today ran an interesting article not too long ago that found that weak domestic incorporation laws and a lack of government oversight has made some states the equivalent of offshore havens. A multi-agency review has cited Nevada, Wyoming and Delaware as the states most conducive to anonymous corporate ownership. In an apparent bid to be business friendly, states seem to be "vying to set minimal corporate information requirements," which has "enabled companies to hide the identities of their owners, thereby making it harder for law enforcement agencies to track suspected tax evasion, money laundering and other crimes." How easy is it? To make a point, two retired IRS agents recently set up anonymously owned companies in Florida, New York and Panama. They then wired money among all three entities.
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- here's another USA Today article
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By Fred | Posted 2:09pm | May 8, 2008
This article does not square with the hyper-inquisitive financial community of today. Try opening a bank account (even at a financial institution where one is a "known" customer) or obtaining a loan. These orgnizations are confirmation phobic with identification requirements that don't end and frivolous FICO-decreasing "hard" credit bureau inquiries. As individuals are effectively considered by financial institutions to be convicted felons since the wonderful Patriot Act provisions, even long-term customers must submit to repetitive, pointless checking.
USA Today's typical story does not report nuances or circumstances that can change the whole character of a story's message.
Perhaps this country should be looking at how to simplify our incomprehensible federal tax code, rather than encouraging cheats by layering rule after mind-numbing rule on top of the existing structure. The same applies to individual states, which spend their time and creative energies figuring out new ways to tax and spend individuals and businesses.
Example: It is common knowledge that the altnernative minimum tax has metastasized beyond its original intent, ensnaring millions in its evil clutches, but Congress refuses to permanently fix the problem because they don't want to lose tax revenue. Is our government to be trusted?