FATF releases best practice guidance on establishing beneficial ownership

The global Financial Action Task Force (FATF) has published best practice guidance on establishing beneficial ownership of legal persons such as companies, foundations and associations.

Many countries are still not effectively preventing criminals and terrorists from hiding their identity and illegal activities behind the facade of seemingly legitimate activity, says FATF, which published formal recommendations on beneficial ownership legislation in 2012.

The report identifies the most common challenges that countries face in ensuring that the beneficial owners of legal persons are identified, and suggests key features of an effective system. It also suggests options for jurisdictions to obtain beneficial ownership information of overseas entities.

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