Tuesday, 30 May 2023 08:32 GMT

US, Over 20 Nations Commit to Transparency to Combat Corruption

(MENAFN) Treasury Secretary Janet Yellen announced on Tuesday that the US has made a transparency commitment with more than 20 nations to fight corruption. The commitment was made at the Summit for Democracy, where Yellen joined leaders from government, civil society, and international organizations to discuss efforts to counter corruption and illicit finance. The Treasury Department stated that the goal of the commitment is to uphold the rule of law, promote good governance, and ensure an equal economic playing field.

The commitment requires countries to improve the transparency of legal persons, such as shell companies, and prevent their misuse. Yellen emphasized that unmasking shell corporations is the most significant step in making the financial system inhospitable to corrupt actors. She stated that the beneficial ownership database will deter dirty money from entering the US and provide law enforcement and other partners with the tools they need to follow the money when it does.

Yellen also stressed that the database must ensure that firms, including small businesses, understand their obligations. This would ensure that all parties are held accountable and promote transparency across the board.

In addition to the transparency commitment, Yellen noted that her agency is working on addressing vulnerabilities in its anti-money laundering infrastructure. The Treasury head highlighted that they are putting a particular focus on excluding corrupt actors from investing in, profiting from, and laundering money through investment firms and purchases of US real estate. This would prevent corrupt actors from using these channels to launder money and promote illicit activities.

The commitment to transparency and anti-corruption efforts is a significant step towards ensuring a fair and just financial system. It promotes good governance and upholds the rule of law, ultimately creating an equal economic playing field. By working with other nations, the US can combat corruption on a global scale and prevent the misuse of legal entities such as shell companies. The beneficial ownership database and a focus on anti-money laundering infrastructure will help ensure that the financial system remains transparent and accountable.


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