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Congresswoman Carolyn B. Maloney (D-NY) gathered today with anti-corruption advocacy groups, law enforcement, and financial institutions to discuss the need for transparency in company ownership and announced the introduction of her bipartisan Corporate Transparency Act. Congressman Peter King (R-NY) is lead Republican cosponsor of the bill.
Congresswoman Maloney was joined today by Stefanie Ostfeld, Deputy Head of Global Witness’ US office; Greg Baer, President of The Clearing House Association; and Rick Fulginiti, retired Price George’s County detective and Chairman of the Fraternal Order of Police’s National Legislative Committee, among others. Global Witness released an undercover report in January 2016 highlighting the use of U.S. shell companies for illicit activity.
Criminal organizations are infamous for using anonymous shell companies, both foreign and domestic, to open bank accounts, launder money, perpetrate fraud, and finance terrorism. The Corporate Transparency Act will require companies to disclose their true, beneficial owners, so that they can no longer escape oversight and thwart law enforcement.
“There’s a reason you didn’t see many Americans involved in the Panama Papers – criminals in America can hide their money right here! We’re the only advanced country in the world that doesn’t already require disclosure of beneficial ownership information and my Corporate Transparency Act will change that,” said Congresswoman Maloney. “Anonymous shell companies have become the preferred vehicle for money launderers, criminal organizations, and terrorist groups because they can’t be traced back to their true owners and the U.S. is one of the easiest places in the world to set up an anonymous shell companies. We are allowing criminals and terrorists to move money around in the U.S. financial system, and finance their operations, freely. Frankly, it’s an embarrassment. We need to fix this gaping hole in our national security and listen to law enforcement who is requesting these changes. This bill would also shore up the safety of our financial system, and would streamline the compliance costs for financial institutions that are trying to make sure that terrorists and criminals aren’t secretly using U.S. banks to move money around. I’m proud to introduce this bill with my friend Rep. King and hopeful we can pass it.”
“Criminals are taking advantage of state laws by establishing firms – often without a physical presence or business activity – to access our banking system,” said Congressman King. The Corporate Transparency Act targets this problem by requiring a company that has the characteristics of a shell corporation to disclose who benefits from the company’s operations and makes that information available only to law enforcement. This simple requirement would enable law enforcement to stop money from flowing across our borders to terrorist organizations.”
“From multi-million dollar healthcare fraud to terrorist financing, anonymously-owned companies act as getaway cars for all sorts of criminals,” said Stefanie Ostfeld, Deputy Head of Global Witness’ US Office. “Swift passage of this legislation will make it harder to move, enjoy and hide dirty money and demonstrate that Congress is serious about making sure the US is not exploited by criminals and the corrupt who are a risk to national security.”
“It is time for the U.S. to catch up to the rest of the world and end the use of shell companies with anonymous ownership,” said Greg Baer, President of The Clearing House Association. “The Clearing House commends Representatives Maloney and King for introducing this legislation, which will help prevent criminals from laundering money by adopting the corporate form and cloaking their ownership. The Clearing House strongly urges Congress to adopt this legislation promptly, and is pleased to see bicameral, bipartisan support for it.”
“Corporations can used as front organizations by criminals conducting illegal activity like money laundering, fraud, and tax evasion,” said Chuck Canterbury, National President of the Fraternal Order of Police representing more than 330,000 members in every region of the country. “This legislation would act as a critical information gathering tool for law enforcement in combating these crimes by giving law enforcement access to the true identity of the owners using a business to conceal their illicit activity.”
Additional original cosponsors of the bill are: Rep. Maxine Waters, Ranking Member of the Financial Services Committee; Rep. Ed Royce (R-CA); and Rep. Gwen Moore (D-WI).
The bill is supported by 27 investors managing assets worth more than $855 billion, listed below. You can see their letter of endorsement here.
    1.    Avaron Asset Management
    2.    Bâtirente
    3.    Boston Common Asset Management
    4.    Candriam Investors Group
    5.    Capricorn Investment Group
    6.    Clean Yield Asset Management
    7.    CtW Investment Group
    8.    Domini Social Investment LLC
    9.    Dominican Sisters of Hope
    10.    Hermes Equity Ownership Services
    11.    Hexavest
    12.    Inflection Point Capital Management
    13.    Local Authority Pension Fund Forum
    14.    Magni Global Asset Management LLC
    15.    Maryknoll Sisters
    16.    Mercy Investment Services, Inc.
    17.    NorthStar Asset Management, Inc.
    18.    Oblate International Pastoral Investment Trust
    19.    Sisters of Charity, BVM
    20.    Sisters of Saint Joseph of Chestnut Hill, Philadelphia, PA
    21.    Sisters of St. Dominic of Blauvelt, New York
    22.    Sisters of St. Francis of Philadelphia
    23.    Trillium Asset Management
    24.    Triodos Investment Advisory & Services BV
    25.    Ursuline Sisters of Tildonk, U.S. Province
    26.    Verka VK Kirchliche Vorsorge VVaG
    27.    Zevin Asset Management
 
Forty-four anti-corruption advocacy groups have also endorsed the bill. You can see their coalition letter here.
    1.    AFCSME
    2.    AFL-CIO
    3.    ActionAid USA
    4.    Americans for Tax Fairness
    5.    Business & Human Rights Resource Centre
    6.    Citizens for Responsibility and Ethics in Washington (CREW)
    7.    Coalition for Integrity
    8.    Consumer Action
    9.    Demand Progress
    10.    EarthRights International
    11.    Economic Policy Institute
    12.    Enough Project
    13.    Fair Share
    14.    Financial Accountability and Corporate Transparency (FACT) Coalition
    15.    Financial Transparency Coalition
    16.    Friends of the Earth
    17.    Global Financial Integrity
    18.    Global Integrity
    19.    Global Witness
    20.    Government Accountability Project (GAP)
    21.    Institute on Taxation and Economic Policy
    22.    International Corporate Accountability Roundtable (ICAR)
    23.    iSolon.org
    24.    Jubilee USA
    25.    Main Street Alliance
    26.    National Latino Famers & Ranchers Trade Association
    27.    Natural Resource Governance Institute
    28.    New Rules for Global Finance
    29.    Norm Eisen
    30.    Open Contracting Partnership
    31.    Open Ownership
    32.    Open the Government
    33.    Oxfam America
    34.    Pax Advisory
    35.    Public Citizen
    36.    Publish What You Pay – U.S.
    37.    Responsible Sourcing Network
    38.    Rights and Accountability in Development (RAID)
    39.    RootsAction.org
    40.    Sunlight Foundation
    41.    Tax Justice Network USA
    42.    The Center for Constitutional Rights
    43.    Transparency International
    44.    U.S. Public Interest Research Group (U.S. PIRG)
 
The FACT Coalition also sent a letter of support to Reps. Maloney and King, which you can see here.
BACKGROUND:
Congresswoman Maloney has introduced a version of this bill in the last four congresses after meeting the law enforcement officials who expressed the need for such legislation. Criminal organizations are infamous for using anonymous shell corporations, both foreign and domestic, to open bank accounts, launder money, perpetrate fraud, and finance terrorism. The Corporate Transparency Act will gather beneficial ownership information from companies that thus far have been able to escape oversight and thwart law enforcement.
 
Corporate Transparency Act
What This Bill Does:
 
·         Directs the Treasury Department to issue regulations requiring corporations and limited liability companies formed in a state that does not already require basic disclosure, to file information about their beneficial owners.
 
·         If a state chooses not to collect beneficial ownership information, then Treasury will collect beneficial ownership information as a backup.
 
·         Establishes minimum beneficial ownership disclosure requirements: must provide beneficial owners’ name, current address, and non-expired passport or state-issued driver’s license.
 
·         Provides civil penalties for persons who submit false or fraudulent beneficial ownership information, or who fail to provide complete or updated beneficial ownership information.
 
Provides Much-Needed Transparency While Avoiding Excessive Burdens:
 
·         Beneficial ownership information collected by Treasury or the states will only be available to: (1) law enforcement; and (2) financial institutions, with customer consent, for purposes of complying with their “Know Your Customer” requirements under Anti-Money Laundering law.
 
·         It is narrowly tailored so as not to be overly burdensome to either businesses or the states themselves — the bill targets companies that are more likely to be shell companies.
 
·         Many companies are already required to disclose their beneficial owners, such as federally regulated banks, credit unions, investment advisers, and broker-dealers, state-regulated insurance companies, and charitable organizations. As such, these companies are exempt from the bill’s requirements.
 
·         Companies with over 20 employees and over $5mm in gross receipts or sales, and which have a physical presence in the U.S., are also exempt from the bill’s requirements, because companies that employ this many people and that have legitimate, business-related income are very unlikely to be anonymous shell companies that were created to hide or launder illicit funds.
 

General News of Tuesday, 11 July 2017

Source: Starrfmonline.com

2017-07-11

The Public Procurement Authority (PPA) has assured local firms that they will not be sidelined in the award of contract for the implementation of electronic procurement which takes off next year.

Government finally settled on IT firm, European Dynamics, for the execution of the project and according to the Authority’s CEO, Agyenim Boateng Adjei, the move among other things will reduce corruption and enhance transparency in the country’s procurement process.

Speaking to Starr Business at the sidelines of an event dubbed Project kickoff, he explained the new system is basically the conversion of the manual system into an electronic one.

He said the PPA in its current law has what it calls margin of preference which gives preference to local bidders.

“So if the local bidders are taking on any foreign tender they have a certain leverage. A platform that gives them leverage over their foreign counterparts, those things will not be eliminated from the [electronic] system,” said Mr. Adjei.

The project is expected to be executed in three phases, spanning a nine-month period.

On his part, the Project Manager of European Dynamics, Anglos Hatzikyriacos assured that measures will be taken to eliminate fraud in the implementation of the new procurement system.

NEW YORK, NY / ACCESSWIRE / July 11, 2017 / Pomerantz LLP announces that a class action lawsuit has been filed against Booz Allen Hamilton Holding Corporation (“Booz Allen” or the “Company”) (NYSE: BAH and certain of its officers. The class action, filed in United States District Court, Eastern District of Virginia, is on behalf of a class consisting of investors who purchased or otherwise acquired Booz Allen’s securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.

If you are a shareholder who purchased Booz Allen securities between May 19, 2016 and June 15, 2017, both dates inclusive, you have until August 18, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.

[Click here to join this class action]

Booz Allen is an American management consulting firm. The Company purports to provide management and technology consulting, engineering, analytics, digital, mission operations, and cyber solutions to governments, corporations, and not-for-profit organizations in the United States and internationally. At all relevant times, Booz Allen has derived substantially all of its revenues from services provided to the U.S. government.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Booz Allen engaged in improper accounting practices in its contracts with the U.S. government; (ii) consequently, the Company’s revenues derived from services provided to the U.S. government were inflated and unsustainable; (iii) discovery of the foregoing conduct would subject the Company to heightened regulatory scrutiny, potential criminal sanctions, and jeopardize its business relationship with the U.S. government; and (iv) as a result of the foregoing, Booz Allen’s public statements were materially false and misleading at all relevant times.

On June 15, 2017, post-market, Booz Allen disclosed that on June 7, 2017, the Company’s subsidiary Booz Allen Hamilton Inc. “was informed that the U.S. Department of Justice is conducting a civil and criminal investigation relating to certain elements of [its] cost accounting and indirect cost charging practices with the U.S. government.”

On this news, Booz Allen’s share price fell $7.43, or 18.89%, to close at $31.90 on June 16, 2017.

The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

SOURCE: Pomerantz LLP