Monday, November 3, 2014

FATF Issues Guidance on Transparency and Beneficial Ownership

The Financial Action Task Force (FATF) has issued a Guidance on Transparency and Beneficial Ownership. The standards on transparency aims to deter and prevent the misuse of corporate vehicles such as companies, trusts, foundations, partnerships, and other types of legal persons and arrangements. Corporate vehicles have been known to have been misused for illicit purposes, such as money laundering, bribery and corruption, insider dealings, tax fraud, terrorist financing, and other illegal activities.

This Guidance Paper covers:

  • how corporate vehicles can be misused and the challenges for countries in implementing measures to prevent such abuse;
  • the definition of beneficial owner;
  • the effective mechanisms countries can use to combat the misuse of legal persons and legal arrangements;
  • how countries can implement measures to enhance the transparency of legal persons;
  • how countries can implement measures to enhance the transparency of legal arrangements;
  • the relationship between standards on transparency and beneficial ownership;
  • the access to information by competent authorities; and
  • provide guidance on international cooperation involving beneficial ownership information.

This guidance does not override the purview of national authorities and is intended to complement existing FATF guidance. It also takes into account work being undertaken by other international bodies which are working on ensuring the transparency of corporate vehicles.

The Guidance Paper can be found here.

No comments:

Post a Comment