Mali Adopts Global Standards on Beneficial Ownership

Strengthening the Fight Against Corruption and Financial Crime

In a significant move to enhance its financial system, Mali has adopted global standards on beneficial ownership requirements as recommended by the Financial Action Task Force (FATF). This implementation will help identify individuals hiding behind shell companies or other complex structures to launder money, evade taxes, or engage in corrupt activities.

Global Standards on Beneficial Ownership

The FATF has extensively engaged with the private sector and other stakeholders on this initiative. In March 2022, the organization agreed on tougher global beneficial ownership rules that will close loopholes and regulatory weaknesses used by criminals to hide their illicit activities.

Key Benefits of Adopting Global Standards

• Ensure investigators can quickly identify the true “beneficial” owners of companies
• Prevent and combat financial crime
• Curbing corruption
• Supporting sustainable economic growth

Enhancements to Recommendations 24 and 25

In February 2023, the FATF agreed on enhancements to Recommendation 25 on legal arrangements to bring its requirements in line with those for Recommendation 24 on legal persons.

Revised Guidance for Mali

Mali has updated its risk-based guidance for Recommendation 25 on Beneficial Ownership and Transparency of Legal Arrangements. This guidance complements existing rules on Recommendation 24 on legal persons and aims to help stakeholders assess and mitigate money laundering and terrorist financing risks associated with trusts or similar legal arrangements.

Conclusion

The FATF’s strengthened standards and guidelines are a significant step towards enhancing transparency and accountability in Mali’s financial system, which will ultimately benefit the country’s economic growth and development.