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Five years after ICIJ’s FinCEN Files investigation exposed the pivotal role the U.S. financial system plays in global dirty money flows, authorities are winding back landmark reforms pushed through in the wake of the revelations, prompting widespread concerns from openness advocates.
The U.S. Treasury Department’s Financial Crimes Enforcement Network – the namesake of ICIJ and BuzzFeed News’ 2020 investigation – announced last week that it expects to delete ownership data that U.S.companies submitted as part of the launch of the previously celebrated company ownership registry.
At a congressional subcommittee hearing, FinCEN’s director flagged plans to delete the data in a proposed rule expected to be finalized later this year. Once the rule is in place, only foreign businesses with foreign owners will be required to report ownership information to the federal government.
Without beneficial ownership information, investigations are useless.
– Gary Kalman, Executive Director of Transparency International U.S.
Experts told ICIJ that the move further guts the Corporate transparency Act, a 2021 bipartisan law passed months after the publication of the FinCEN Files aimed at cracking down on anonymous shell companies that facilitate illicit finance.A key part of the legislation was the establishment of the company ownership registry, which was officially launched last year amid ongoing political and legal challenges, and which required companies operating in the U.S. to submit ownership information to the Treasury.
In March, the Treasury Department moved to exempt all U.S. businesses from the requirement meaning only foreign-owned firms operating in the U.S. would need to comply with the reporting obligations. The potential destruction of data would be “doubling down on Treasury’s unlawful gutting of this statute,” Ian Gary,executive director of the Financial Accountability and Corporate Transparency (FACT) Coalition said.
“The Corporate Transparency Act was a landmark achievement, and what we would call a foundational reform,” said Gary Kalman, Executive Director of Transparency International U.S. “If you only build the foundation, you can’t actually live in the house, right? But if you build a house without a foundation, it’s going to fall apart. Without beneficial ownership information, investigations are useless.”
FinCEN Files, five years later
FinCEN Files, a global investigation by more than 400 journalists published in 2020, drew on a cache of secret financial intelligence reports to reveal how banks moved dirty money for drug cartels, corrupt regimes, arms traffickers and other international criminals – in ways perpetuated by a broken U.S.-led enforcement system.
Five years after publication, Jason Leopold, one of BuzzFeed News’ lead reporters on the project, said he still remembers how the investigation made immediate waves, with bank stocks plummeting and governments calling for investigations.
“It felt like an explosion,” Leopold said. “You felt the veil of secrecy being lifted.”
The documents included more than 2,100
The National Defense Authorization Act (NDAA) is a United States federal law that specifies the budget and expenditures of the Department of Defense (DoD). It is passed annually and is one of the most significant pieces of legislation concerning U.S. national security. The NDAA covers a wide range of issues, including military personnel policies, weapons procurement, defense research and advancement, and broader national security matters.
History and Evolution
The NDAA has been enacted annually as 1961. Initially, it was a relatively straightforward authorization of funding levels. Over time, it has grown in scope to include a vast array of policy provisions impacting the military and national security. the act’s evolution reflects changing geopolitical landscapes and evolving defense priorities.
Key Provisions and Areas of Focus
The NDAA typically addresses several core areas:
- Military Budget: Authorizes funding levels for the dod, allocating resources to different branches of the military and specific programs.
- Personnel Policies: Sets policies related to military pay, benefits, promotions, and force structure.
- Weapons Systems: Authorizes the procurement of new weapons systems and the modernization of existing ones. This often includes debates over the cost and effectiveness of specific programs.
- Defense Research and Development: Funds research and development efforts aimed at advancing military technology.
- National Security: Addresses broader national security concerns, such as cybersecurity, counterterrorism, and intelligence gathering.
Recent Developments (2020 Example)
The NDAA for 2020, such as, included provisions related to the establishment of the United States Space Force, increased funding for cybersecurity initiatives, and restrictions on military construction projects. Notably, President Donald Trump vetoed the 2021 NDAA ,citing objections to provisions regarding social media companies and the renaming of military bases honoring confederate figures. However, Congress successfully overrode the veto on January 1, 2021, marking the first time Congress had overridden a presidential veto of the NDAA since 1983.
The NDAA Process
The NDAA follows a specific legislative process:
- Committee Review: The House and Senate Armed Services Committees draft their respective versions of the NDAA.
- Floor Debate and Vote: Each chamber debates and votes on its version of the bill.
- Conference Committee: If the House and Senate versions differ (which is common), a conference committee is formed to reconcile the differences.
- Final Vote: The conference report is then voted on by both the House and Senate.
- Presidential Action: The bill is sent to the President for signature or veto.
Controversies and Debates
The NDAA is frequently enough the subject of intense debate and controversy. Common points of contention include:
- Spending Levels: Disagreements over the appropriate level of funding for the military.
- Weapons Programs: debates over the cost and effectiveness of specific weapons systems.
- Policy Provisions: Controversial policy provisions that may address issues beyond customary defense matters.
- War Powers: Questions about the balance of power between the executive and legislative branches regarding the use of military force.
Key Takeaways
- The NDAA is a crucial piece of legislation for U.S. national security.
- It authorizes the DoD budget and sets important defense policies.
- The NDAA process is complex and frequently enough involves significant debate.
- The act has evolved significantly since its inception in 1961.
Published: 2025/09/24 03:57:39