Given the new sh*t that has come to light out of Panama, Jack Lew and his friends next door at the White House are going to go ahead and finalize a rule that’s been in the works for four years, which would tell banks that the rule saying they have to “know their customer” really means what it says.
The White House’s Office of Management and Budget earlier this week accepted for final review a rule that would force banks to identify the owners of companies behind shadowy financial transactions, such as the firms revealed in the Panama Papers scandal or the ones used to buy real estate. It would close a loophole that critics say allows criminal money into the U.S. financial system….
The existing rules don’t require financial institutions to learn the true owner of a corporate entity, which critics have long said encourages corrupt officials across the globe to create shell companies to stash their funds in the U.S. financial system for safekeeping.
U.S. Rule Would Force Banks to Identify Shell-Company Owners [WSJ Risk & Compliance blog]