WASHINGTON—The Obama administration has announced a set of financial regulations that would force companies to disclose more information about their owners, part of an effort billed as a crackdown on tax evaders and money launderers.
Administration officials announced the new rules Thursday as Treasury Secretary Jacob Lew urged Congress to pass legislation that would further enhance transparency in the U.S. banking system and help law enforcement track down secret owners.
“Illicit financial activity is a critical concern for the United States and our partners around the world,” Lew wrote in a letter to congressional leaders. “Additional statutory authority is necessary to put the United States in the strongest position to combat bad actors who seek to hide their financial dealings and evade their tax responsibilities.”
Lew’s letter came as Treasury finalized the so-called “customer due diligence” rule dictating how banks should keep records on who owns the companies that use their services.
A second proposed rule would close a loophole that allows a narrow class of foreign-owned companies to avoid reporting to the IRS.
