Trump Delivers a Win for Crooks

Ever since Donald Trump returned to the White House, his administration has taken a sledgehammer to anti-corruption efforts, destroying policy after policy dedicated to preventing bribery and money laundering in the country.

But this week brought the biggest blow yet: The Treasury has obliterated a recent rule to deter devious shell companies, handily reopening the American economy to anyone looking to hide their illicit wealth.

On Tuesday, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced that businesses formed in the United States would no longer need to disclose their actual owners, and that nearly all the data already gathered on such companies would be destroyed.

This move, which Treasury Secretary Scott Bessent called “a victory for common sense and American small businesses,” effectively undoes years of progress in curbing devious financial networks, both domestic and foreign.

It also delivers a new shelter for wealthy Americans who wish to dodge taxes and move money around undetected.

Corporate entities that allow owners to stay anonymous are handy vehicles for corruption—they enable dodgy characters from around the world to stash their proceeds in an otherwise legal American business.

After a brief experiment cracking down on these black boxes, the U.S. has decided to let them multiply instead.

Technically, this company registry will still exist, but as a mockery of its former self.

When the registry was created a few years ago, it was heralded by many ( including me ) as the single greatest anti-corruption step the United States had taken in decades.

The U.S. had long been the primary provider of anonymous shell companies to anyone and everyone around the world.

For as little as $100 and in as little as 15 minutes, any cartel head, human trafficker, oligarch, autocrat, kleptocrat, fentanyl dealer, or corrupt politician in America or overseas could create a shell company in states such as Delaware, Nevada, and Wyoming.

Perfectly untraceable and perfectly legal, American shell companies became by the late 2010s the go-to tools for anyone looking to hide their financial tracks for any reason. [ Read: America has never seen corruption like this ] These companies weren’t just the preserve of foreign crooks.

The industry in the U.S. has long served wealthy Americans looking to hide their assets and enrich themselves and their families.

American shells provided all of the secrecy protections they could want and, after the Supreme Court’s 2010 Citizens United decision eliminated corporate-spending limits in American politics, they became an ideal tool for covertly bankrolling American politicians, saturating U.S. elections in billions of dark, untraceable dollars.