Beneficial Ownership
About Beneficial Ownership
Beneficial ownership refers to the individuals who ultimately own or control a company or legal entity, regardless of the name on the company's official registration documents. Transparency in beneficial ownership is key to combating financial crime, including money laundering and terrorism financing.FINCARR’s strengthened beneficial ownership standards and guidance, which will help identify the corrupt, sanctions evaders, money launderers and tax evaders who hide or launder their criminal property or activities in shell companies or other complex structures as well as trusts or other legal arrangements. The FINCARR extensively engaged with the private sector and other stakeholders on this initiative. This comprehensive body of work aims to improve transparency of beneficial ownership globally.
Issues Related to Beneficial Ownership
| Issue | Description |
|---|---|
| Identification of Beneficial Owners | Countries must ensure that the ultimate beneficial owners of companies are identified and made publicly available. |
| Legal Structures and Control | Complex legal structures or layers of ownership can obscure the true beneficial owners, making it difficult to trace illicit financial flows. |
| Lack of Transparency | Countries without a centralized register or without access to beneficial ownership information hinder international cooperation and law enforcement efforts. |
| Private Companies | Private companies, shell companies, or trusts can be used to hide the beneficial owners, making it harder for authorities to monitor and investigate potential abuses. |