FATF Issues Guidance on Beneficial Ownership of Legal Persons

The Financial Action Task Force (FATF), an intergovernmental organization that develops and promotes policies to combat money laundering and terrorist financing, has issued guidance on beneficial ownership of legal persons.

Beneficial ownership refers to the individuals or entities that ultimately own or control a legal entity, such as a company or trust. The transparency of beneficial ownership is a crucial aspect of preventing corruption and illicit financial activities such as money laundering and terrorist financing.

The FATF’s guidance on beneficial ownership of legal persons provides recommendations for countries to promote transparency of beneficial ownership, which can help to prevent illicit financial activities. The guidance calls on countries to:

-Obtain and maintain accurate and up-to-date beneficial ownership information for legal persons
-Ensure that information on beneficial ownership is accessible to competent authorities in a timely manner
-Ensure that beneficial ownership information is adequate, accurate, and current
-Ensure that legal persons are required to identify their beneficial owners
-By adopting these measures, countries can increase transparency and accountability, and reduce the opportunities for corruption and illicit financial activities.

The FATF’s guidance on beneficial ownership of legal persons comes at a time when the need for transparency in financial transactions and ownership structures is increasingly recognized by governments and international organizations. In recent years, several high-profile cases of corruption and money laundering have brought the issue of beneficial ownership transparency to the forefront of public attention.

As the FATF’s guidance is implemented, the hope is that all countries will promote transparency of beneficial ownership, and prevent corruption and illicit financial activities. By ensuring that beneficial ownership information is accurate and accessible, countries can increase transparency and accountability, and reduce the opportunities for corruption and illicit financial activities.

In conclusion, the FATF’s guidance on beneficial ownership of legal persons provides recommendations for countries to promote transparency of beneficial ownership, which can help to prevent illicit financial activities. By adopting these measures, countries can increase transparency and accountability, and reduce the opportunities for corruption and illicit financial activities.

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