FATF Issues White Paper Addressing Challenges Facing Beneficial Ownership Collection
First Post in a Series on the FATF Plenary Outcomes
The Financial Action Task Force (“FATF”) held its fourth Plenary, virtually, on June 21-25. Delegates representing 205 members of the Global Network and observer organizations, including the International Monetary Fund, the United Nations, and the World Bank attended. They discussed numerous topics, including the financial flows linked to environmental crime; financing of ethnically or racially motivated terrorism; risks relating to the financing of proliferation of weapons of mass destruction; virtual assets and virtual asset service providers, or VASPs; technological innovations; and asset recovery outcomes. Many of these topics will be the subject of forthcoming reports from FATF. Significantly, the group also discussed transparency surrounding information on the beneficial ownership of entities, which of course is the focus of the Corporate Transparency Act (“CTA”) recently passed in the United States.
Here, we will focus on (i) the white paper on beneficial ownership issued by FATF as a result of the Plenary, and (ii) developments in FATF’s country-specific measures in place to combat money laundering. Future blog posts will discuss other outcomes and related reports produced by this wide-ranging Plenary, such as the report regarding money laundering and environmental crime.
As we will discuss, the beneficial ownership white paper seeks to obtain guidance on numerous legal and logistical challenges to the collection of such information, such as verification and access. Many of these same challenges exist for U.S. regulators and the regulated community in regards to the CTA. As to the country-specific measures, FATF has subjected Haiti, Malta, the Philippines, and South Sudan to increased monitoring, whereas Ghana’s status has improved. Continue Reading FATF Concludes Fourth Plenary on Money Laundering and Terrorist Financing Risks