This lengthy article describes how on politician from the State of Delaware has thwarted national and international programs to prevent bad guys from laundering money in the U.S.
Here’s what the good guys tried to do:
- In 2006, the Financial Action Task Force, or FATF, a group of some three dozen nations formed to combat money laundering and terrorist financing, noted “significant shortcomings” in the United States. The group declared Washington “non-compliant” in four of 40 categories for anti-money-laundering compliance. Among the failures: Authorities could not obtain timely information about a company’s real owners, FATF said.The task force demanded that the United States fix the problem. For Washington, which was pressing allies to crack down on terror financing, it was an embarrassing critique.
- The same year, the U.S. Government Accountability Office, Congress’s auditing arm, concluded that federal law made it too easy for individuals to anonymously form companies. Delaware was a favored destination for such companies, the report said.
- As anti-secrecy momentum built, Senator Levin and then-Senator Barack Obama joined forces with Senator Norm Coleman of Minnesota to make it tougher to register new companies without identifying the owners.
Thanks to the continuing efforts (described in the article) of Delaware Secretary of State Jeffrey Bullock none of these initiatives has succeeded.