FATF has published a report setting out examples of best practices to help jurisdictions establish a satisfactory measure of transparency regarding the identification of the beneficial ownership of legal persons.
In addition to taking a multi-pronged approach to gathering identification evidence, the report recommends, and provides supporting examples of, the following elements of an effective system:
- risk assessment;
- adequacy, accuracy and timeliness of information in beneficial ownership;
- access by competent authorities;
- forbidding or immobilising bearer shares and nominee arrangements; and
- effective, proportionate and dissuasive sanctions.