Starting tomorrow a group of government officials and experts belonging to the world’s leading anti-money laundering organisation – the Financial Action Task Force (FATF) – will be meeting in Paris. On the agenda is the adoption of a document on an issue that has major implications for the fight against crime, corruption and tax evasion around the world.
It’s a shame nobody outside of this small circle of experts from governments and international organisations has had a chance to see the document before it comes out.
According to the FATF website, at its upcoming plenary meeting the organisation will adopt guidance on beneficial ownership and company transparency.
Beneficial ownership is the term used to describe who actually benefits from the assets and profits of a company. At the moment many countries allow the formation of shell companies with proxy directors which obscure the real (beneficial) owner. When people are allowed to hide their identity behind a shell company in this way, there is a risk of this advantage being used to hide illicit money.