Assets hidden by Russian billionaires in the United States are sparking calls, backed by both Republicans and Democrats, to uncover “financial secrecy” – the country’s preferred formula for protecting property, according to Bloomberg.

She pointed out that officials from New York to Alaska are looking for information about anonymous limited liability companies that do business in their states, and in some cases after it was revealed that Russian billionaires were behind the composition of the company.

This would be based on a law passed at the federal level prior to Russia’s invasion of Ukraine that requires LLCs to disclose information about their owners to the Treasury Department.

The agency said the effort is still in its early stages, arguing that it will represent a significant lineup change since 1977, when Wyoming was the first state to establish an LLC.

Now New York is in the lead, given that the Manhattan real estate associated with Russian billionaire Oleg Deripaska, who is now under sanctions, was used by Delaware LLC.

“People are shocked to learn about this loophole in the law that allows buyers to be anonymous,” said New York Democratic Senator Brad Hoelman, who sponsored the bill. Of course, the focus is on the international wealthy who supported the system. Russian President Vladimir Putin has reiterated his interest in these efforts.”

The New York proposal, which could be voted on this month, will be one of the most visible attempts to end financial secrecy in the United States, which this week was named the country most complicit in helping private individuals hide wealth. to the Tax Justice Network. The United States has received its worst rating since the group began issuing its rating in 2009.

New York will take a step forward from the Corporate Transparency Act passed in Washington last year and become the first state to implement its own disclosure reforms, opening the door to citizen freedom of information requests under state law.

According to Bloomberg, this could affect the 1.6 million LLCs operating within the state.

The bill failed to create a public online registry that could ensure that other companies, partnerships or trusts would not be used to hide the identity of the true owners. Proponents of transparency are a separate proposal in this regard.

Anders Knobel, principal researcher for the Utilitarian Property Tax Justice Network, said the United States “sorely needs to catch up,” given that other countries have been using the system for years.

Sanctions imposed on Putin and his wealthy allies in the aftermath of the “invasion of Ukraine” have raised concerns from London to New York about the ability of anonymous shell companies to complicate law enforcement efforts.

New York Democrat Carolyn Maloney, who authored the Corporate Transparency Act, said the state bill would “uncover the shady world of New York LLCs” that allow oligarchs and others to hide assets.

In addition to Deripaska, Russian billionaires from Roman Abramovich to Dmitry Rybolovlev have purchased real estate in New York through limited liability companies, according to city property registries and court documents, none of which are authorized by the United States.

Russian billionaire Dmitry Rybolovlev in Monaco – June 25, 2019 – REUTERS

“The US is the easiest place in the world to open an anonymous company. We want to be a business-friendly country. However, that doesn’t mean they deserve privacy that could put our communities at risk,” said Gary Kalman, chief executive. Transparency International USA.

Other efforts include the state of Alaska’s proposal for a public database of limited liability company ownership and discussions in Wyoming about credit sector reform after the Pandora Papers exposed Russian billionaire Igor Makarov’s use of a so-called “cowboy cocktail.” “, a lending agency that hides behind fake companies. Canada has sanctioned Makarov, but he is not sanctioned in the US.

“We don’t even know to what extent foreign players are taking advantage of the credit laws,” Alaska Democratic Party spokesman Zach Fields said. “It’s hard to estimate given the high degree of opacity.”

For Wyoming, home to a $31.5 billion credit industry, significant changes in tax policy are still “far-sighted,” said Sen. Cal Case.

Ryan Gurull of the Coalition for Financial Reporting and Corporate Transparency (headquartered in Washington DC) participated in recent legislative briefings on disclosure reforms in the state, as well as in Wyoming and Alaska.

“New York is one of the most desirable commercial real estate and real estate markets in the world, and corrupt people, sanctions evaders and other bad actors want to access these markets anonymously,” he said. “New York, in essence, says “enough”.

Hoelman proposed the reforms in 2017 after an investigation into former US President Donald Trump’s tower found that many buyers were using limited companies, but that didn’t reach the Congressional threshold.

“It’s hard to believe that no one knows who owns vast tracts of real estate in parts of my neighborhood, such as Billionaires Street,” Hoelman said.