More than two million corporations and limited liability companies are formed each year in the United States, yet U.S. states do not generally require disclosure of beneficial ownership information when entities are formed. Bad actors, ranging from drug traffickers to foreign corrupt officials, may exploit the corporate formation process to launder proceeds of illicit conduct. Congress has taken note that such actors may layer entities into structures resembling Matryoshka dolls to conceal ownership and evade detection. In an effort to protect U.S. national security and to bring the United States into compliance with global anti-money laundering standards, Congress recently enacted federal legislation requiring corporations, limited liability companies, and other similar entities established in or registered to do business in the United States to report information on beneficial owners.