FATF consultation on beneficial ownership legislation (‘Recommendation 24’) | AML, CFT

One of the sources of the unworkable beneficial ownership bureaucracy that is harming people in Europe, is FATF, that is drafting legislation without the scrutiny of experts or parliaments. FATF intends to change its legislation in regard of beneficial ownership (Recommendation 24) and is inviting the public to participate in a consultation.

FATFs ultimate beneficial ownership rules
The current text of the ultimate beneficial ownership rules in the FATF legislation is very general:

More details are to be found in something that is called ‘interpretative notes’, in reality they are implementation rules, see these pages from the Recommendations document.

FATF on 25 June announced its intention to amend Recommendation 24:

Revisions to Recommendation 24 – White Paper for Public Consultation
25 Jun 2021

The FATF is considering a number of potential changes to Recommendation 24, including the potential for updates in the areas set out below. FATF’s work in this area is ongoing, and will benefit from hearing views from stakeholders, including companies and other legal persons, financial institutions, designated non-financial businesses and professions (DNFBPs), and non-profit organisations. Deadline for comments, 20 August (18h00 CET).

White Paper R.24 Public Consultation (pdf)

On this undated page you find the text in html. In the white paper the FATF admits that the beneficial owners themselves are not considered to be a ‘stakeholder’. Hopefully beneficial owners and their organisations will participate.

The questions asked by FATF in regard of the ‘Multipronged approach to collection of Beneficial Ownership (BO) information‘ are relevant. FATF asks e.g. for the disadvantages of the BO registry and it asks if the compliance burden on low risk companies be reduced without creating loopholes that could be exploited by criminals. The public is invited to respond, the consultation ends 20 August 2021.

In preparing European AML Regulation, the Commission would do well to take the consultation responses into account.

Over Ellen Timmer, advocaat ondernemingsrecht @Pellicaan

Verbonden aan Pellicaan Advocaten, http://www.pellicaan.nl/, kantoor Rotterdam, telefoon 088-6272287, fax 088-6272280, e-mail ellen.timmer@pellicaan.nl ||| Weblogs: algemeen: https://ellentimmer.com/ || modernisering ondernemingsrecht: http://flexbv.wordpress.com/ ||| Motto: goede bedoelingen rechtvaardigen geen slechte regels
Dit bericht werd geplaatst in English - posts in English on this blog, Financieel recht, onder meer Wft, Wtt, Fraude, witwasbestrijding, Wwft, Grondrechten, rechtsstaat e.d., Ubo-register en getagged met , , , , . Maak dit favoriet permalink.

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