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Incorporation Transparancy and LE Act

July 12, 2013

The Honorable Thomas Carper
Chairman
Senate Committee on Homeland Security & Governmental Affairs
340 Dirksen Senate Office Building
Washington, DC 20510

The Honorable Tom Coburn
Ranking Member
Senate Committee on Homeland Security & Governmental Affairs
442 Hart Senate Office Building
Washington, DC 20510

Dear Chairman Carper and Ranking Member Coburn:

On behalf of the 26,000 members of the Federal Law Enforcement Officers Association (FLEOA), I am writing to express our support for the legislative proposal: Incorporation Transparency and Law Enforcement Assistance Act. In the prior congressional session, we advocated for similar legislation, and we are committed to supporting current legislative efforts.

Since our last letter of support on this issue, nothing has changed. Suspected terrorists, drug trafficking organizations and other criminal enterprises continue to exploit the anonymity afforded to them through the current corporate filing process in a few states. Hiding behind a registered agent, these criminals are able to incorporate without disclosing who the beneficial owners are for their company(s). This enables them to establish corporate flow‚Äźthrough entities, otherwise known as "shell companies," to facilitate money laundering and narcoterrorist
financing.

Even through the due process of proper service of a court order, law enforcement officers are unable to determine who the beneficial owners are of these entities. This has to stop. While we fully recognize and respect the privacy concerns of law abiding citizens, we need to install a baseline of checks and balances to deter the criminal exploitation of our corporate filing process.

We recommend that states safeguard the identities of the beneficial owner(s), and only disclose this information to authorized law enforcement officials through the subpoena process. This common sense approach would afford law abiding citizens the privacy they deserve, while rolling up the welcome mat for terrorists and other criminals.

FLEOA members from the FBI, ICE, IRS, and the DEA have provided numerous examples of how suspected terrorists and other criminals have exploited the filing process in certain states. In light of the sequester and the drastic reduction in law enforcement resources, we cannot continue to ignore this critical homeland security issue. I am available to meet with members of your committee and provide feedback from the law enforcement community as necessary.

I urge you to support the Incorporation Transparency and Law Enforcement Assistance Act and help us keep America safe.

Respectfully yours,

Jon Adler
National President
Federal Law Enforcement Officers Association