Second FATF consultation regarding the beneficial ownership recommendation | AML, CFT

In June I wrote about a FATF consultation regarding Recommendation 24.
On 21 October FATF started a second consultation on the same Recommendation:

Revisions to Recommendation 24 and its Interpretive Note – Public Consultation.

A pdf file and a Word file with the draft text of proposals for amendments are available. Proposed amendments are in redline. A response has to be provided by 3 December 2021 (18h00 CET).

Some of the proposals are:

Foreign entities with a sufficient link should register their beneficial owner
Interesting is that beneficial ownership obligations are extended to foreign entities with a sufficient link to a country. According to the proposal having a bank account, employing staff, owning real estate, investing in the stock market, owning a commercial/business insurance or being a tax resident is considered to be a sufficient link.

Public access to the registry of beneficial owners
FATF intends to make public access to the beneficial owners registry obligatory.

Obligatory information on the beneficial owner
Examples of information aimed at identifying the natural person(s) who are the beneficial owner(s) according to the proposal include:

      • the full name,
      • nationality(ies),
      • the full date and place of birth,
      • residential address,
      • national identification number and document type, and
      • the tax identification number or equivalent in the country of residence.

Nominee shareholders and directors
In the glossary there definitions for the nominator and the nominee shareholder or director are added. A nominee director is “an individual or legal entity that exercises the functions of the director in the company on behalf of and subject to the instructions of the nominator“.

Over Ellen Timmer

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