Beneficial Ownership Transparency in ASEAN Member States and Timor-Leste
Introduction
The Association of Southeast Asian Nations (ASEAN) member states and Timor-Leste have implemented beneficial ownership transparency measures as part of their efforts to comply with the Financial Action Task Force (FATF) standards. This article provides an overview of the current status of beneficial ownership transparency in these countries, focusing on their compliance with FATF Recommendations 24 and 25.
Rating of Focus States
The following table shows the rating of focus states according to their compliance with Recommendations 24 and 25:
| Country | Rating |
|---|---|
| Brunei Darussalam | Compliant |
| Cambodia | Partially Compliant |
| Indonesia | Partially Compliant |
| Lao PDR | Partially Compliant |
| Malaysia | Partially Compliant |
| Myanmar | Non-Compliant |
| Philippines | Partially Compliant |
| Singapore | Compliant |
| Thailand | Partially Compliant |
| Timor-Leste | Partially Compliant |
| Viet Nam | Partially Compliant |
Beneficial Ownership Transparency Frameworks
Legislative and Regulatory Frameworks
- All focus states have legal and regulatory frameworks in place that include a definition of “beneficial owner.”
- Four focus states (Cambodia, Lao PDR, Thailand, and Viet Nam) primarily set out their beneficial ownership transparency frameworks in anti-money-laundering/countering the financing of terrorism (AML/CFT) obligations.
- Seven focus states (Brunei Darussalam, Indonesia, Malaysia, Myanmar, Philippines, Singapore, and Timor-Leste) set out their beneficial ownership transparency frameworks in relation to the formation and maintenance of legal persons and arrangements.
Definition of Beneficial Owner
- All focus states define “beneficial owner” with reference to natural persons.
- Some countries distinguish between corporate controllers and individual controllers.
Conclusion
In conclusion, while ASEAN member states and Timor-Leste have made progress in implementing beneficial ownership transparency measures, there is still room for improvement. The FATF recommendations provide a framework for these countries to strengthen their efforts and ensure that their legal and regulatory frameworks are effective in preventing the misuse of companies and legal arrangements for financial crimes.