NDAA Provision on Shell Companies Could Affect Illegal Trade Practices
The National Defense Authorization Act, which passed the House of Representatives with a veto-proof majority of 335-78, would end anonymity at shell companies, in an attempt to prevent money laundering. Companies, whether corporations or limited liability companies, would have to file the information with the Financial Crimes Enforcement Network (FinCEN). If the regulations are not obeyed, or if the information is false, there could be criminal penalties, not just fines.
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According to lawyer Rick St. Hilaire, who tracks cultural property laws' effects on “illicit archeology and imports,” the NDAA also expands Bank Secrecy Act reporting requirements to parties “'engaged in the trade of antiquities, including an advisor, consultant, or any other person who engages as a business in the solicitation or the sale of antiquities,' requiring these parties to forward a Suspicious Activity Report (SAR) to FinCEN when a financial transaction appears criminal,” he wrote on a blog as the bill moved through Congress. A Senate vote on the NDAA, which was written through compromise between the two chambers, is expected this week. President Donald Trump has threatened to veto the bill. If Congress wished to overturn the veto, it might have to return after Christmas.