GFIA outlines best approaches to ensure transparency around beneficial ownership of legal persons
1 September 2021
GFIA has responded to a consultation by the Financial Action Taskforce (FATF) on its draft amendments to recommendation 24, which covers the transparency and beneficial ownership of legal persons.
In some jurisdictions, persons subject to AML/CFT rules are already obligated to identify the beneficial owner (both within or outside the national territory), and to take reasonable steps to verify the identity of the beneficial owner. If an insurer cannot identify a beneficial owner or does not understand the structure of the legal person, it will not do business with them.
Some jurisdictions have chosen to set up central registers of beneficial owners. The establishment of these registers at national level is already complex, so it could be difficult for a state to keep a register of foreign legal persons. A more effective solution would be to link existing national registers.
GFIA added that official registries allow for a structured, comprehensive approach (ie the centralisation of all legal persons' data) and quality information (ie beneficial ownership information is adequate, accurate and up-to-date).
