Guatemala Takes a Major Step towards Corporate Accountability

Increasing Transparency through Beneficial Ownership Reforms

In a significant move towards promoting corporate accountability and reducing financial secrecy, the government of Guatemala has made commitments to beneficial ownership transparency. This step is part of various international agreements that aim to increase transparency in corporate structures.

Key Agreements and Initiatives

• International Monetary Fund (IMF) Rapid Financing Instrument: Guatemala has pledged to implement beneficial ownership transparency as part of its agreement with the IMF.
• Extractive Industries Transparency Initiative (EITI): As a member of EITI, Guatemala is required to disclose beneficial ownership in the extractives sector.

Global Support for Beneficial Ownership Transparency

Open Ownership, a global initiative promoting transparent corporate structures, is working closely with Guatemalan authorities and civil society organizations. This collaboration aims to:

• Review and draft legislation: Ensuring that Guatemala’s laws align with international standards.
• Provide citizens with access to accurate information: About company ownership.

Expected Outcomes

The implementation of beneficial ownership transparency in Guatemala is expected to have a positive impact on the country’s efforts to combat:

• Money laundering
• Corruption
• Tax evasion

By providing greater visibility into corporate structures, authorities will be better equipped to identify and address potential threats to financial stability and economic development.

Ongoing Support from Open Ownership

As the process unfolds, Open Ownership will continue to provide updates and support to ensure that Guatemala meets its commitments and achieves meaningful progress in beneficial ownership transparency.