U.S. Treasury Takes a Stand for Transparency

In the aftermath of the “Panama Papers” scandal, the U.S. Treasury announced that it would put forward a long-shelved draft rule to compel U.S. banks to identify the people who use shell companies and similar corporate structures when they try to open accounts.

This identification requirement -- a “customer due diligence rule” -- is a practice common in most of the developed world. The Treasury version would require individuals who own or control 25 percent or more of a corporate entity to disclose their identities to a bank before opening accounts. Doing so would help banks peek behind these complex structures to make sure that they’re not doing business with tax evaders, terrorists, money launderers, drug traffickers or corrupt government officials.