FATF publishes beneficial ownership best practice

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.