On 24 October 2019, the Financial Action Task Force (FATF) published a report on Best Practices on Beneficial Ownership for Legal Persons. This follows the FATF's guidance on transparency and beneficial ownership which explain what the FATF standards on beneficial ownership require. However, given the challenges in effectively implementing these measures, the FATF found there was a need to outline more practical advice and examples on the effective measures to ensure legal persons are prevented from being used for criminal purposes, and that information on their beneficial ownership is available to competent authorities. The report therefore suggests ways jurisdictions can ensure compliance with recommendation 24 (enhancing the transparency of legal persons) and provides advice on how to implement approaches in the most effective way.
The report found risk assessments, accurate and timely information on beneficial ownership, access to information by competent authorities, forbidding or immobilising bearer shares and nominee arrangements, and effective, proportionate and dissuasive sanctions to all be elements of an effective system. The report also puts forward suggestions on ensuring authorities can access information on beneficial ownership of overseas entities.
View the full report on beneficial ownership for legal persons here.
View the 2014 guidance on transparency and beneficial ownership here.
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