Legislation S.995B/A.3484 Creates an LLC Ownership Database for Government and Law Enforcement Use
Governor Secured Compromise to Crack Down on Unlawful Conduct While Protecting Privacy
Governor Hochul today signed the LLC Transparency Act, which will create a database of the beneficial owners of Limited Liability Corporations that is accessible to government agencies and law enforcement. The Governor secured a compromise agreement with the Legislature that will allow members of law enforcement and regulatory authorities to uncover misconduct, while addressing legitimate privacy concerns.
“For far too long, bad actors have been protected by the loose disclosure requirements of LLC ownership,” Governor Hochul said. “Wage theft, money laundering, tenant mistreatment and other unlawful activity has been masked by the opaque ownership structure of an LLC. The new LLC Transparency Act will give law enforcement and State regulators the tools they need to hold bad actors accountable.”
Legislation S.995B/A.3484 creates an LLC beneficial ownership database that can be accessed by Federal, State and local government law enforcement across New York State. This legislation gives these entities the tools to tackle criminal activity which, until now, has occurred behind a curtain of concealment. Individuals who set up, or already have ownership of LLCs and meet the requirements for disclosure, will be required to identify the names of the beneficial owner(s) in the filing.
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