U.S. to ask firms to name owners

WASHINGTON — The U.S. Treasury Department proposed a new rule Tuesday, as part of its efforts to combat corruption and terrorism, to require companies to identify who owns and controls them, rather than the names of the people who formed the company.

Shell companies have been used to mask people’s identities in ways that can enable illegal activities, causing the federal government to seek greater transparency as part of last year’s Anti-Money Laundering Act. The Treasury Department estimates that the average costs of compliance will be roughly $50 for companies.

The proposal will “help close the loopholes that undermine U.S. national security, bolster economic fairness, and protect the integrity of our financial system,” Treasury Secretary Janet Yellen said in a statement. There will be a 60-day comment period on the proposed rule.