Financial Crime World

Enhancing Company Registries in Southeast Asia: Closing Information Gaps

Key Developments and Recommendations

The region has made significant progress in collecting and disclosing information on beneficial ownership, with notable advancements in Indonesia, Malaysia, and the Philippines. However, there remains a need to address current information gaps.

Beneficial Ownership: Progress and Challenges

  • Significant Progress: Significant progress has been made in collecting and disclosing information on beneficial ownership.
  • Leading Countries: Indonesia, Malaysia, and the Philippines are leading the way in this area.
  • Remaining Gaps: Despite progress, there are still gaps in information on beneficial ownership.
  • Accessible Basic Information: Basic legal ownership information (name of legal person, date and status of registration, registered business address, and registered business activities) is accessible to the public.
  • Limited Transparency: However, information on management, members of the board of commissioners, names and number of shareholders, and initial capital invested are often not accessible by the public.

Strengthening Reporting Mechanisms

At a meeting in Kuala Lumpur, recommendations were developed to strengthen reporting mechanisms on legal and beneficial ownership:

  • Legislative Definition: Adopting a legislative definition of ‘beneficial owner’
  • Onshore Information: Ensuring that legal persons maintain beneficial ownership information onshore
  • Financial Institutions: Requiring financial institutions to take necessary measures to identify and verify the beneficial ownership of their customers
  • Central Register: Setting up a central register of beneficial owners
  • Access for Authorities: Ensuring competent authorities have access to accurate and up-to-date information

Importance of Comprehensive Information

Ensuring comprehensive, accurate, and up-to-date information on beneficial and legal ownership of legal persons and other arrangements is crucial for facilitating due diligence and investigations into corruption and money laundering.