By Sabina Mollot
State Senator Brad Hoylman is hoping to shine some light into the shadowy world of limited liability corporations which, under current New York law, do not have to provide names or addresses of their owners when the companies are registered. Because of the mysterious nature of LLCs, they can be used to give seemingly endless campaign contributions as well as hide illegal activities like tax evasion and money laundering. To combat the money laundering issue, which has also been linked to terror funding, legislation has already been introduced at the federal level by Congress Member Carolyn Maloney, and Hoylman said his own bill is modeled after that one.
Hoylman’s legislation, announced, on Monday, would:
- Make it mandatory for LLCs organized in New York or that do business in the state to disclose who their owners as well as provide a current residential or business address
- Require the creation and maintenance of a publicly available database of those LLCs and their owners
- Impose penalties that range from ten thousand dollars in fines to three years in prison for LLC owners who knowingly provide false, incomplete or outdated information.