By World News Report Bureau
On the face of it, there is nothing spectacular about Delaware – a small, sleepy state on the north-eastern coast of the US
Still if people have heard its name is because it’s the home of US Vice-president Joe Biden and giant chemical company DuPont.
HAVEN FOR MULTINATIONAL/ CORPORATE CRIME
The second smallest US state is also famous for its corrupt people, shady companies, drug traffickers, embezzlers and fraudsters. In other words, it is a haven for transnational crime, money a. It’s a safe place for criminals wanting to set up shell corporations for illicit and private money laundering–in a purely legal way through the US banking system.
These notwithstanding, low taxes, business-friendly laws and a sophisticated legal system for hearing business disputes draw thousands of brand-name corporations to Delaware. In fact, nearly 65 percent of Fortune 500 companies are incorporated here, making it the state with the most corporations registered within its borders — more than its inhabitants. In quite a few case Companies arrive in Delaware –for legitimate business reasons – but not everyone is clean.
Thanks for its corporate secrecy rules, many anonymous and illegitimate shell companies find it prudent to operate from Delaware
The flaws in the US corporate system is exploited by – anyone to everyone from Serbian smugglers to Russian arms dealers to conduct their dirty tricks in peace.
GUARANTEED CORPORATE SECRECY
The best part of the story is that no one asks for details about the promoters. Anyone seeking to hide details about a Company or its Directors can set up business in Delaware. Besides locals can be appointed as nominee directors.
Even though US Federal and state authorities have initiated steps to lift the veil of secrecy, these have allegedly proved to be mere window dressing.
Delaware is not the only US state where corporate secrecy laws prevail. Even Nevada, Wyoming and Louisiana are similar tax for shell companies.
But all said and done Delaware is the prime hiding place for corrupt and anonymous companies to avoid the attention from authorities and cheat gullible investors of their life’s savings.