FATI Panel Issues Final Report, Calls for Global Standard on Beneficial Ownership Transparency
The Financial Action Task Force (FATI) panel has released its final report, calling for a new global standard on beneficial ownership transparency. This move is seen as a significant step towards increasing transparency in global financial transactions and combating money laundering.
Recommendations
The report recommends that all countries establish a central, public register of company owners to prevent kleptocrats from undermining an inclusive recovery from the COVID-19 pandemic. This will help to:
- Prevent the misuse of shell companies
- Increase transparency in global financial transactions
- Combat money laundering and terrorist financing
- Enhance accountability and good governance
Support from Transparency International
Transparency International CEO Daniel Eriksson welcomed the FATI panel’s call for a new global standard on beneficial ownership transparency. He emphasized that it is essential for countries to take concrete steps to ensure that company owners are transparently identified, and information is made publicly available.
Background
In recent months, Transparency International has been urging the FATI panel to lead the way in setting standards for anti-money laundering and combating corporate secrecy. The organization has also launched a petition calling for central, public registers of beneficial ownership, which has been signed by over 700 organizations worldwide.
The Pandora Papers investigations released earlier this year highlighted the need for greater transparency in company ownership. The reports revealed how high-level officials, oligarchs, and billionaires were using anonymous shell companies to move wealth offshore and conceal their identities.
Expert Opinion
Transparency International’s anti-money laundering expert, Maíra Martini, stated that the Pandora Papers have shown us that political leaders who should be taking action to tackle dirty money are instead abusing the system’s opacity. She emphasized that it is essential to take concrete steps to prevent jurisdiction-shopping and ensure that company owners are transparently identified.
Impact and Next Steps
The FATI panel’s report is expected to have a significant impact on global financial transactions and will be reviewed by countries in the coming months. Transparency International urges governments around the world to adopt the FATI panel’s recommendations and establish central, public registers of beneficial ownership. It is time for governments to take action and ensure that the financial system is transparent and accountable.
Call to Action
Governments, businesses, and civil society must work together to increase transparency in global financial transactions and combat money laundering. The adoption of a new global standard on beneficial ownership transparency will be an important step towards achieving this goal.