A bill that requires new limited liability companies to disclose their beneficial owner, initial reporting company and tax-exempt company—information that will be shared on a public database—was passed by the NY legislature last week.
The bill, which drew support from trade unions and public policy groups and is expected to be signed by Gov. Kathy Hochul, aligns New York with a tough new federal Corporate Transparency Act, adopted by Congress in 2021 to combat money laundering, which goes into effect at the end of this year.
According to Emily Gallagher, an Assembly member from Brooklyn who co-authored the bill along with Brad Hoylman, a state senator, the new law will prevent "the worst actors in New York's real estate market" from hiding corrupt activities using anonymous shell companies.
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