Senate Proceeding on Mar 11th, 2009 :: 3:40:10 to 3:48:25
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3:40:07 to 3:40:29( Edit History Discussion )

Carl Levin: this is a tragedy that didn't have to happen. i yield the a senator: mr. president? the presiding officer: the

3:40:10 to 3:48:25( Edit History Discussion )
Speech By: Carl Levin

3:40:30 to 3:40:51( Edit History Discussion )

Carl Levin: senator from mr. levin: intertkaougs -- i'm today with my colleagues -- i ask unanimous consent th permitted to proceed in morning business for up to ten minutes. the presiding officer: without objection, the senator is recognized. mr. levin: mr. president, i'm introducing today with senators

3:40:52 to 3:41:12( Edit History Discussion )

Carl Levin: grassley and incorporatio law enforcement assistance act. this bill tackles a long-standing homeland problem involving inadequate state and corporation that leave this country unnecessarily vulnerable to wr enforcement and damages the

3:41:13 to 3:41:34( Edit History Discussion )

Carl Levin: international stature of the united states. the problem is straightforward. each year our states allow persons to form nearly 2 million corporations and liability companies in this country without knowing or even asking who the beneficial owners are behind those corporations. right now a person forming a

3:41:35 to 3:41:55( Edit History Discussion )

Carl Levin: u.s. corporation or a limited liability company, an l.l.c., provides less information to the state than is required to open a bank account or obtain a driver's license. instead states routinely permit persons to form corporations and l.c.'s under state laws without disclosing the names of

3:41:56 to 3:42:16( Edit History Discussion )

Carl Levin: any of the people who will control or benefit from them. it's a fact that criminals are exploiting this weakness in our state and corporation practices. they're forming new corporations and enties to commit crimes ranging from drug trafficking, money laundering, tax evasion, financial fraud and corruption.

3:42:17 to 3:42:37( Edit History Discussion )

Carl Levin: law eorcement authorities investigating these crimes have complained loudly for years about the lack of beneficial ownership information. last year, for example, the u.s. department of treasury sent a letter to our states stating that -- quote -- "the lack of transparency with respect to the individuals who control

3:42:38 to 3:43:00( Edit History Discussion )

Carl Levin: privately-held for-profit legal enties created in the united states continues to represent a substantial u.s. antimoney laundering counterterrorism financing regime." the use of u.s. companies to mask the identity of criminals presents an ongoing substantial problem for the

3:43:01 to 3:43:23( Edit History Discussion )

Carl Levin: united states and enforcement authorities." michael chertoff, former secretary of state of the u.s. department of homeland security wrote -- qte -- "in countless investigations where the criminal corporations, the lack of law enforcement's ability to gain access to true beneficial ownership information slows,

3:43:24 to 3:43:44( Edit History Discussion )

Carl Levin: confuses or impedes the efforts by investigators to follow criminal proceeds. this is the case in financial fraud, terrorist financing, and money laundering investigations. it is imperative," chertoff wrote. "that states maintain beneficial ownership information while the

3:43:45 to 3:44:05( Edit History Discussion )

Carl Levin: company is active and to have a set time frame for preserving those shell companies could be sold and resold to sefrpl beneficial owners in the -- sefrpl beneficial owners in the course of a year or less. by maintaining records, not only of the initial beneficial ownership but of the subsequent beneficial owners, states will

3:44:06 to 3:44:27( Edit History Discussion )

Carl Levin: provide la enforcement the tools necessary to clearly identify the individuals who utilized the company at given period of time." these types of complaints by u.s. law enforcement, their pleas for assistance and their warnings about the dangers of anonymous u

3:44:28 to 3:44:49( Edit History Discussion )

Carl Levin: operating here and abroad are cataloged in a stack of reports and hea department of justice, the department of homeland the financial crimes enforcement network of the department of treasury, the internal revenue service, and others. to add insult to injury, enforcement officials have often had to stand silent by

3:44:50 to 3:45:10( Edit History Discussion )

Carl Levin: when asked by their counterparts in other countries for information about who owns u.s. corporation committing crimes in their jurisdictions. the reality is that the united states can't answer those requestsecause we don't have the information. our bill will cure the problem by

3:45:11 to 3:45:32( Edit History Discussion )

Carl Levin: corporation forms to include a request for the names of a corporation's beneficial owners. states would not be required to verify the information, but civil or criminal penalties would apply to persons who submitted false information. if subpoena or a sumons to obtain

3:45:33 to 3:45:54( Edit History Discussion )

Carl Levin: the states would then supply the data contained on its forms. this bill has received the support of numerous law enforcement associations including the federal law enforcement officers association, the fraternal order of police, the national association of assisted -- assistance united states

3:45:55 to 3:46:16( Edit History Discussion )

Carl Levin: attorneys, the national narcotics the united states marshal service association, and the association of former a.t.f. agents. the federal law enforcement officers association, which represents more than 26,000 federal law enforcement officers says the following: that --

3:46:17 to 3:46:37( Edit History Discussion )

Carl Levin: quote -- "the unfortunate lacks attitude states has criminal enterprises to affect those state's flawe system." the federal law enforcement officers association went on to say the following: we regard

3:46:38 to 3:46:59( Edit History Discussion )

Carl Levin: corporate ownership in the manner as ownership. requiring the driver of a vehicle to have a registration an insurance -- and insurance card is not a violation of. it should be available to law enforcement officers who make legally authorized requests

3:47:00 to 3:47:21( Edit History Discussion )

Carl Levin: pursuant investigations. close quote. the national association of assistant united states attorneys, which represents more than 1,500 federal prosecutors urges congress to take legislative inadequate state corporation practices, their association

3:47:22 to 3:47:45( Edit History Discussion )

Carl Levin: says -- quote -- "mindful of the ease with which criminals establish front organizations to assist in money terrorist financing, tax evasion, and other misconduct, it is shocking and that many state laws permit the creation of corporations without asking for the

3:47:46 to 3:48:08( Edit History Discussion )

Carl Levin: corporation's beneficial owners. the legistion that i'm introducing today with senator grassley and senator mccaskill will guard from that happening and no listeninger permit criminals to exploit the lack of transparency in the registration of corporations." our bill was also endorsed by president obama during the last

3:48:09 to 3:48:25( Edit History Discussion )

Carl Levin: congress when he was a the united states senate and when he was an original co-sponsor of our predecessor bill senate bill 2956. mr. president, i would ask unanimous consent that the balance of my statement be inserted in the record including the printing of the bill.