a typical day involves interactions with hundreds of companies.
Buying their goods, using their services,
have become such a familiar part of the modern landscape
that it's easy to forget they're artificial entities
created to allow real people to do business.
But there are some types of companies
that aren't engaged in any business at all.
Instead, these anonymous companies
exist mainly to disguise people doing things
they'd rather not have the public know about.
And these people go to great lengths to hide any links between their names
The life of an anonymous company
usually begins in what's known as a secrecy jurisdiction,
a place whose laws allow new companies to be registered
with little disclosure about who owns or controls them.
Some may simply not require collecting that information.
but make it nearly inaccessible to anyone else.
And the lack of incentive to verify companies' real owners
makes it easy for people to cover their tracks.
For example, someone may register a company in the name of a relative,
who acts on instruction from the company's actual owner
while keeping their name confidential.
Once registered, a company can do many of the same things as a human being,
What's more, it can be listed as the owner of other companies,
including ones opened in places with stricter disclosure rules.
This allows someone to create a complex world-wide chain of ownership
that can take years to unravel.
may be wholly owned by another one in Liechtenstein,
which is owned in turn by one in the British Virgin Islands.
And an anonymous company can be transferred to a new owner at any time
with no public record of the change.
Defenders of financial secrecy argue that wealthy individuals need it
to avoid intrusive media attention
and threats to personal security.
But while this may sometimes be justified,
anonymous companies play a role in almost every type of economic crime,
including many major corruption cases.
They are used by corporations evading taxes,
rogue governments skirting sanctions,
Organized crime groups launder their profits through anonymous companies.
Corrupt government officials award valuable contracts
to corporations they secretly own.
International oligarchs with criminal connections or questionable pasts
have used anonymous companies to discretely buy luxury apartments
in cities like London and New York City,
keeping them as safe stores of wealth.
And even when criminals are convicted,
may be difficult for authorities to locate or seize,
making it harder for victims to be compensated.
Efforts are now underway to chip away at these crime-enabling mechanisms.
International authorities and NGOs
have called for requiring companies to state who ultimately makes their decisions
and benefits from their assets.
But while progress is being made,
international cooperation has been difficult to achieve,
as governments that profit from registering anonymous companies
are reluctant to lose business.
And some of the most popular places for this practice
are located not on remote, tropical tax shelters,
but within the same advanced nations which claim to be leading the fight
for global financial transparency.
But still, it's a fight worth fighting.
Closing the legal loopholes that enable anonymous companies
would help us cut down on corruption and illegal activity.
It would also allow us, as the general public,
to better understand the flow of enormous sums of money
that impact politics, our daily lives, and the health of our world.