Please submit your response, including any proposed wording, to FATF.Publicconsultation@fatf-gafi.org with the subject line «[Author`s] comments on drafts amending Recommendation 24» by 20 August 2021 (18:00 CET). This public consultation is now closed. Anonymous shell companies are one of the most widely used methods for laundering the proceeds of crime and corruption. The FATF`s new best practices help countries rid themselves of secrecy about the ultimate owner of a company, foundation, association or other legal entity and prevent their misuse for criminal and terrorist purposes. 2. What constitutes a sufficient link to the country? How should countries determine which legal entities created abroad have a sufficient connection to the country? Is there an alternative standard to «sufficient binding» that could be used? What are the practical issues addressed/considered in the identification and risk assessment of legal entities created abroad? II. Duties of fiduciaries under Rule 25 – The FATF is considering how to further clarify the obligations of fiduciaries (and persons in an equivalent position in a similar arrangement) to obtain and maintain adequate, accurate and up-to-date information about the parties to a trust. Among other things, R.25 currently requires trustees to obtain and retain information about beneficiaries (defined as persons who are entitled to a trust agreement) or classes of beneficiaries. This requirement does not extend to matters relating to the powers of discretionary trusts that could benefit from a trust in the future, although it is likely that such a purpose qualifies for it, for example if it is mentioned in a letter of wish or if it may present a higher ML/TF risk.
In particular, the FATF is considering linking these obligations in countries where trustees reside and/or trusts are managed. In addition, the FATF is considering subjecting professional and non-professional fiduciaries to the same requirements by extending the obligation to keep records for at least 5 years to these lay fiduciaries. 21. Do you see any difficulties in obtaining beneficial ownership information for legal arrangements if the trustee (or equivalent trustee) is based in another jurisdiction or if the legal arrangement is administered abroad? 22. Are there any proposals to improve R.25 and its interpretative note in order to better achieve the stated objective of preventing the misuse of legal rules on money laundering or terrorist financing? Contact: For further information, journalists are invited to contact the FATF Secretariat on +33 (0)1 45 24 90 90 or contact@fatf-gafi.org. These changes are the result of two years of work on the revision of the standards. They strengthen international standards for beneficial owners of legal persons in order to ensure greater transparency on the ultimate ownership and control of legal persons and to reduce the risks of misuse of legal persons. This will significantly strengthen transparency requirements for beneficial ownership worldwide, while preserving some flexibility for each country to go further in refining individual regimes. 18.
Who, other than trustees, could play a role in verifying BO information under legal arrangements? The Financial Action Task Force (FATF) is the global standard-setting body for anti-money laundering and countering the financing of terrorism measures. In 2003, the FATF was the first international body to set global standards for beneficial ownership. Countries should ensure that their authorities could obtain up-to-date and accurate information on the person(s) behind companies, foundations and other legal entities. In 2012, the FATF further strengthened and clarified its beneficial ownership requirements. Bearer shares are negotiable instruments that transfer ownership of a legal entity to the person holding the bearer share certificate. Company vehicles play a vital role in the global economy, conducting a wide range of legitimate business and entrepreneurial activities.