Tax evaders and criminals can run, but it will get harder every day to hide. Beneficial ownership hit a turning point in the past 12 months, as a wave of regulatory efforts have aimed squarely at strengthening transparency rules. Despite that, compliance experts today are challenged, since global beneficial ownership data for now can still be difficult to access quickly.
For example, the Financial Action Task Force’s report to G20 indicated that only a handful countries so far have collected beneficial ownership data and made it available. For the rest of FATF’s 200-plus jurisdictions and regions to implement beneficial ownership standards and share the data, there are many hurdles to overcome. And that’s just one issue.
While it is going to take time to realize full beneficial ownership transparency worldwide, it is important for regulated firms to employ a risk-based approach today. That requires leveraging the best available data and adopting measures to augment their beneficial ownership due diligence processes whenever that data isn’t so easy to source. The ultimate goal is to identify high-risk scenarios in not-so-transparent nations.
For more information on the challenges to beneficial ownership transparency, as well as suggestions to help you get closer to solving them, download How to Identify Beneficial Ownership in a Not-so-transparent World.