The Financial Task Force (FATF) has long recognized the risks posed by anonymous ownership of legal entities, such as companies and trusts, in facilitating money laundering, terrorism financing and other illicit activities.
In response, the FATF has developed a comprehensive framework for identifying and understanding beneficial ownership of legal persons, which is crucial in promoting transparency, preventing financial crimes, and safeguarding the integrity of the global financial system.
This guidance on beneficial ownership of legal persons provides a detailed overview of the FATF’s requirements and recommendations for countries, financial institutions, and other relevant stakeholders to effectively identify and verify beneficial ownership information, as well as to mitigate the associated risks. By implementing these measures, countries can significantly enhance their ability to detect, investigate and prosecute financial crimes, while also promoting a more stable and secure financial system.
The full text of the guidance, can be found in the link below.