Financial Crime World

Here is the article in markdown format:

Implementing Beneficial Ownership Transparency: A Guide for Countries

I. General Obligations

  • Identify and Verify Beneficial Owners: Countries should require financial institutions and designated non-financial business and professions (DNFBPs) to identify and take reasonable measures to verify the beneficial ownership of their customers.
  • Effective Supervision: Countries should ensure that these obligations are effectively supervised, including the establishment and enforcement of sanctions for non-compliance.

II. Implementation in Spain

  • Act 10/2010: This act requires obliged persons to take appropriate measures to identify beneficial owners, monitor business relationships, and apply due diligence measures according to existing risks.
  • Supervision by Executive Service and Financial Supervisors: These authorities supervise compliance with these obligations, and misapplication is sanctioned by Act 10/2010.

III. International Cooperation

  • Domestic and International Information Exchange: Countries should ensure that their national authorities cooperate effectively domestically and internationally on beneficial ownership information exchange.
  • Access to Available Information in Company Register and Council of Notaries: Competent authorities in Spain make extensive use of available information in the company register and council of notaries for both national investigations and foreign counterpart’s requests.

IV. Tax Authority Access to Beneficial Ownership Information

  • Act 10/2010: This act provides that tax authorities and law enforcement agents have access to beneficial ownership information obtained by obliged persons.
  • Commission Secretariat’s Role: The commission secretariat may provide tax authorities with relevant information for tax or police operations.

V. Combating Tax Evasion

  • Supporting G20 Efforts: Countries should support G20 efforts to combat tax evasion by ensuring that beneficial ownership information is accessible to their tax authorities and can be exchanged with international counterparts in a timely and effective manner.
  • Prohibition on Bearer Shares: Countries should prohibit the ongoing use of bearer shares and take measures to ensure that bearer shares are not misused.
  • Measures to Prevent Misuse of Nominee Shareholders or Directors: Countries should also take measures to prevent the misuse of legal persons that allow nominee shareholders or directors.