Thread by @JoshRudes

Boom—lawmakers to respond to the #PandoraPapers with landmark bipartisan legislation that would make professional enablers watch out for dirty money! 🧵politico.com/news/2021/10/0…

The ENABLERS Act—to be introduced Friday—would require lawyers, investment advisers, art dealers, realtors, accountants, PR firms, and others to ensure their clients' money isn't of suspicious origin. That's exactly what's recommended by my recent research!securingdemocracy.gmfus.org/regulating-the…

And it makes sense that it's inspired by the #PandoraPapers, because the leaked revelations implicate all these enablers. Here are 4⃣ US-tied examples involving trust administrators, financial advisors, real estate professionals, art dealers, and law firms.icij.org/investigations…

1⃣ Trust and company service providers in South Dakota—and industry that has quadrupled in size over the past decade and now rivals or surpasses all other offshore centers—have set up trusts for 30 people accused of fraud, bribery, and human rights abuses. washingtonpost.com/business/inter…

2⃣ The king of Jordan used a financial advisor and law firm who didn't do enhanced diligence and recorded the owner as "you know who." US real estate workers were in on the joke, bragging on Facebook about working on "the King of Jordan's place in Malibu." washingtonpost.com/world/interact…

3⃣ When the US prohibited @Sothebys from auctioning looted Cambodian antiquities linked to a notorious art dealer, he stashed his money (including hedge fund investments) in trusts set up in South Dakota. A dozen pieces remain on display at the @metmuseum. washingtonpost.com/world/interact…

4⃣ America’s biggest law firm (@bakermckenzie) has evolved from a pioneer in corporate tax dodging to an enabler of notorious tycoons, Russian arms makers, and kleptocrats like Jho Low and Ihor Kolomoisky. And they shape lax financial laws around the world.icij.org/investigations…

The #PandoraPapers are also replete with examples of accountants, PR firms, yacht sellers, and others. It's the Who's Who of professional enablers handling dirty money, often in the United States. washingtonpost.com/business/inter…

When I published my research two weeks ago, I suggested Treasury start with the low-hanging fruit, and then only try to tackle the "four horsemen" if Congress shows bipartisan interest and support. I didn't expect that Congressional momentum to start so quickly and strongly!

This issue is just as important as beneficial ownership reform, and getting it done would require replaying the political strategy that worked in that case.

That means building a broad civil society coalition, framing the national security need, & getting administration support.

Regulating the enablers is how the US stops being the world's top offshore financial haven, starts treating dirty money as a national security threat, and begins showing how democracies can deliver against corrupt adversaries and powerful special interests.securingdemocracy.gmfus.org/regulating-the…

Update: Now @washingtonpost is reporting on the ENABLERS Act, including a quote from me and a link to my research report! washingtonpost.com/business/2021/…

Update: @ICIJorg calls ENABLERS "landmark legislation that would crack down on professional enablers who move dirty money for corrupt clients." And apparently @apmassaro3 and I are of one mind about how the #PandoraPapers make the case for this reform. ⬇️ icij.org/investigations…

Update: The bill is out!

@washingtonpost says experts call it "the most significant change of anti-money-laundering rules since 9/11."

@DrewOCCRP calls it "one of the better anti-corruption bills I have seen."

Press re.: malinowski.house.gov/media/press-re…

Text: malinowski.house.gov/sites/malinows…