FATF seeks views on combatting corruption through shell companies

In response to the Pandora Papers, the Financial Action Task Force (FATF) is asking for views on proposed rules for a new strategy for combatting corruption through shell companies or other anonymous entities

Countries would be required to establish registries listing who actually owns a company or other entity while registry entries would have to be verified and updated within a month if the new rules are endorsed.

Beneficial ownership transparency

Recent revelations in the Pandora Papers by the International Consortium of Investigative Journalists underscored the importance of ensuring transparency about the true beneficial ownership of companies to stop criminals from hiding their illicit activities and proceeds behind complex corporate structures.

The FATF says these revelations echo the results of its mutual evaluations and other major investigations: countries need to do more to ensure that information on beneficial ownership is available and up to date.

In June 2021, the task force issued a white paper for public consultation on potential amendments in key policy areas to strengthen the requirements of Recommendation 24 on the transparency of beneficial ownership of legal persons.

Views now sought

The input received informed proposed changes to the language of Recommendations 24, its interpretive note and the glossary, which the FATF approved for public consultation at its recently concluded October 2021 plenary meetings.

The FATF says it would now welcome views on these proposed amendments, which are published on its website.

Draft amendment text to Recommendation 24 and the interpretive note to Recommendation 24 can be downloaded from here.










Categories: Trade Based Financial crimes News

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