The Financial Action Task Force (FATF) has published a report to G20 finance ministers and central bank governors which sets out its ongoing work to improve the implementation of international standards on transparency, including on the availability and exchange of beneficial ownership information, to prevent the misuse of companies, trusts and other corporate vehicles.
‘The challenge is not the lack of international standards to improve transparency. The challenge lies in the effective implementation of these measures,’ said the FATF in its introduction.
Following the report, the FATF will work on the following proposals to reinforce the implementation of the existing international standards relating to transparency and beneficial ownership:
ensure the emphasis on beneficial ownership in the FATF peer review follow-up processes is effective to apply peer pressure upon countries to accelerate their own implementation of the FATF Standards in this area;
deliver clear and consistent recommendations to countries on how to improve implementation of the beneficial ownership requirements during assessment processes; and
enhance cooperation between the FATF and the OECD global forum to further ensure the coherence and mutual reinforcement of work to improve transparency in relation to beneficial ownership, including through identifying examples of effective implementation.
The FATF is looking for a public commitment by G20 members to ‘lead by example’. This would include:
fully and effectively implementing the FATF Standards on transparency and beneficial ownership without further delay;
effectively monitoring key gatekeepers (including company formation agents, lawyers and trust-and-company-service providers) for compliance with their customer due diligence (CDD) obligations, and enforcing those requirements, including identifying and shutting down those who facilitate the misuse of corporate structures;
taking action at the national and global level to address barriers to information-sharing (e.g. reviewing data protection and privacy laws); and
taking action to facilitate the timely sharing of basic and beneficial ownership information at the domestic and international level, including ensuring that such information is accurate and up to date.
The Financial Action Task Force (FATF) has published a report to G20 finance ministers and central bank governors which sets out its ongoing work to improve the implementation of international standards on transparency, including on the availability and exchange of beneficial ownership information, to prevent the misuse of companies, trusts and other corporate vehicles.
‘The challenge is not the lack of international standards to improve transparency. The challenge lies in the effective implementation of these measures,’ said the FATF in its introduction.
Following the report, the FATF will work on the following proposals to reinforce the implementation of the existing international standards relating to transparency and beneficial ownership:
ensure the emphasis on beneficial ownership in the FATF peer review follow-up processes is effective to apply peer pressure upon countries to accelerate their own implementation of the FATF Standards in this area;
deliver clear and consistent recommendations to countries on how to improve implementation of the beneficial ownership requirements during assessment processes; and
enhance cooperation between the FATF and the OECD global forum to further ensure the coherence and mutual reinforcement of work to improve transparency in relation to beneficial ownership, including through identifying examples of effective implementation.
The FATF is looking for a public commitment by G20 members to ‘lead by example’. This would include:
fully and effectively implementing the FATF Standards on transparency and beneficial ownership without further delay;
effectively monitoring key gatekeepers (including company formation agents, lawyers and trust-and-company-service providers) for compliance with their customer due diligence (CDD) obligations, and enforcing those requirements, including identifying and shutting down those who facilitate the misuse of corporate structures;
taking action at the national and global level to address barriers to information-sharing (e.g. reviewing data protection and privacy laws); and
taking action to facilitate the timely sharing of basic and beneficial ownership information at the domestic and international level, including ensuring that such information is accurate and up to date.
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