Magni Supports Transparency in Beneficial Ownership: The Incorporation Transparency and Law Enforcement Assistance Act

Panama Papers Leak builds support for increased transparency

FOR IMMEDIATE RELEASE ST. PAUL, MN, APRIL 12, 2016 – Magni Global Asset Management LLC (Magni) today announced that it has signed a letter to be sent to both the US House and Senate by the United Nations-supported Principles for Responsible Investment (PRI) encouraging passage of the Incorporation Transparency and Law Enforcement Assistance Act.

According to the PRI, “The Act would require companies to disclose information about the people who own or control them (often called the “beneficial owners”) at the time they are created. At present, companies can be created anonymously in all 50 states, effectively removing personal responsibility or accountability from the corporate equation. As a result, anonymously-owned American companies have been misused for illicit purposes and to skirt sanctions. This law would help end corporate anonymity, protect investors whose success is predicated upon transparent and accountable companies, and allow law enforcement to fight crime more effectively.”

Magni assesses the countries of the world on their ability to create an environment conducive to good corporate governance. “Ownership transparency is an area where the US gets relatively low scores,” said Magni CEO Kurt Lieberman. “Addressing this shortcoming in US law is a matter of good governance and it is part of creating an environment most conducive to rapid and equitable economic growth.”

The Act, known as HR 4450, was introduced Feb. 3, 2016 by Rep. Carolyn Maloney (D-NY) and in the Senate as S.2489, sponsored by Sen. Sheldon Whitehouse (D-RI). Both bills have been referred to committee.