NEW YORK (CBSNewYork) — A Manhattan congresswoman said Monday that current law is making it easy for terrorists to hide funds right in the U.S.

As WCBS 880’s Marla Diamond reported, a bill sponsored by U.S. Rep. Carolyn Maloney (D-N.Y.) would require states to get information about the beneficial owner a company when it is incorporated.

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“Terrorists, money launderers and corrupt overseas government officials are using our lax ownership disclosure laws to hide their ill-gotten gains,” Maloney said.

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The loophole is especially frustrating for law enforcement, said Manhattan District Attorney Cyrus Vance.

“This is not an issue that we should take lightly,” Vance said. “We need to know where the money comes from; who’s moving it.”

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Vance said ironically, the Cayman Islands – known for offshore banks – have stricter standards when it comes to disclosures about shell companies.