FATF seeks comments on legal aspects of beneficial ownership

The Financial Action Task Force (FATF) is seeking comments to its updated guidance paper to its Recommendation 24 (R24) on the transparency and beneficial ownership of legal persons.

Separately, the task force is seeking comments on its review of Recommendation 25 (R25) and its interpretive note on the transparency and beneficial ownership of legal arrangements, and a possible amendment of the definition of beneficial ownership in the glossary to provide more clarity regarding legal arrangements.

Updated guidance

For its updated R24 guidance paper, the FATF is seeking views on whether this guidance is clear or whether there are any issues which need further clarification.

It is also looking for case examples of registries and alternative mechanisms for holding beneficial ownership information; mechanisms to verify beneficial ownership information in low-risk scenarios, and the use of information held by stock exchanges for listed companies to meet beneficial ownership information obligations.

Proposal on legal arrangements

The FATF wants to improve R25 and its interpretive note to better meet its stated objective to prevent the misuse of legal arrangements for money laundering or terrorist financing.

In particular, the FATF would welcome comments on whether its proposals to mitigate the risk of misuse of legal arrangements and to ensure access to beneficial ownership information are adequate and whether they are clear.

The task force is also seeking comments on the expected impact of the proposals on legitimate activity and what the challenges are for implementation.

Deadline

Comments on both the guidance and the proposal should be submitted by email by 6 December.

Further details on the FATF Guidance on Beneficial Ownership (Recommendation 24) – Public Consultation as well as links to relevant documents can be found here.

Further details on Revision of R25 and its Interpretive Note – Public Consultation as well as links to relevant documents can be found here.

 



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