Trump Administration Orders Deletion of Shell-Company Registry, Exempting 99% of U.S. Firms
Updated
Updated · The Bulwark · Aug 14
Trump Administration Orders Deletion of Shell-Company Registry, Exempting 99% of U.S. Firms
3 articles · Updated · The Bulwark · Aug 14
Summary
Treasury will erase the federal beneficial-ownership database and previously collected records, removing a tool Congress created in 2021 to help investigators trace shell companies.
A GAO report said the administration had already exempted about 99% of companies from reporting; this week's rule makes that rollback permanent while keeping narrower requirements for some foreign-linked entities.
Scott Bessent framed the move as relief from compliance burdens on small businesses, but former lawmakers and financial-crime experts said deleting the data will leave police and future administrations with fewer leads on fraud, cartels and money laundering.
The decision extends Trump's broader retreat from anti-corruption enforcement, following pauses in Foreign Corrupt Practices Act enforcement and other steps critics say weaken the government's ability to track illicit finance.