The evidence is clear: anonymous shell companies enable kleptocracy, tax evasion, wildlife crime and arms trafficking. For far too long, the corrupt and criminals have been able to hide behind secretive corporate structures without leaving much trace.
The Financial Action Task Force (FATF), the global standard-setter on anti-money laundering, is the only international body with the mandate to bring all countries up to speed. It can do so by requiring all countries to put in place the measures that would make financial crime investigations both more efficient and effective. It can also sanction countries that fail to comply.
After years of powerful resistance, the FATF members are now finally open to suggestions on the ways to revise of the global standard on beneficial ownership transparency.
What’s to fix?
The Financial Action Task Force (FATF) sets the global anti-money laundering standards through its 40 recommendations. Failure to adhere to these 40 recommendations can have serious consequences, as black or grey-listed countries may have challenges in accessing the global financial system.
Recommendation 24, in particular, requires countries to ensure that competent authorities – such as law enforcement, financial intelligence units and tax agencies – have access to adequate, accurate and up-to-date information on the true owners of companies operating in their country.Learn More Key Fixes › Download the Recommendation 24 ›