The Shell Game: An Easy Hide-and-Go-Seek Game for Criminals around the World

Authors

Idelys Martinez

First Page

185

Document Type

Comment

Abstract

This Comment explores how the laws of the United States facilitate the formation of anonymous shell corporations, how criminals take advantage of these laws, and how the United States is in dire need of a change. Part I of this Comment discussed the legitimate and illicit uses of shell corporations by weighing the interests of corporate owners and their need for shell corporations and the potential risks that shell corporations pose to the United States. Part II of this Comment outlines the legislative efforts to regulate anonymity and discusses why the current laws and proposed legislation are ineffective. Part III of this Comment identifies the problems caused by the ineffectiveness of the current incorporation laws by giving key examples of criminality linked to shell corporations and discussing how these laws have facilitated the purported crimes. Part III of this Comment also identifies the loopholes in the proposed legislation. Part IV of this Comment presents a solution to these problems by proposing an amendment to the proposed legislation to include a high-security database for storing beneficial ownership information at the time of incorporation (available only to law enforcement agencies and financial institutions), which would eliminate the current loopholes. Finally, Part V of this Comment concludes with a summary of the main points discussed herein.

Recommended Citation

Idelys Martinez, The Shell Game: An Easy Hide-and-Go-Seek Game for Criminals around the World, 29 St. Thomas L. Rev. 185 (2017).
Available at: https://scholarship.stu.edu/stlr/vol29/iss2/6