GAO Report on Company Formations Focuses on U.S. Shell Companies, Evidence Gathering Problems

On April 25, 2006, the General Accounting Office released Company Formations: Minimal Information Is Collected and Available. The report found that most states do not require ownership information at the time a company is formed, that few states require ownership information in the annual or biennial reports of corporations and limited liability companies (LLC), and that law enforcement officials fear that criminals are using shell companies to conceal illicit activities. In the context of international efforts toward transparency, the report has a number of potentially important international enforcement policy implications.