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Beneficial Ownership Transparency in Asia and the Pacific: A Review of International Standards

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In an effort to combat corruption, money laundering, terrorist financing, and tax evasion, governments around the world are working to improve transparency in beneficial ownership. In this study, we review the international framework covering beneficial ownership in selected Asian and Pacific countries.

International Frameworks

Table 1: Overview of International Frameworks Covering Beneficial Ownership

Country FATF EAG APG MONEYVAL EITI UNCAC

These international frameworks include the Financial Action Task Force (FATF), the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG), the Asia/Pacific Group on Money Laundering (APG), the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), the Extractive Industries Transparency Initiative (EITI), and the United Nations Convention against Corruption (UNCAC).

FATF Recommendations

The FATF is an intergovernmental body that sets international standards to combat money laundering, terrorist financing, and other related threats. In March 2022, the FATF issued its revised Recommendation 24, which requires countries to adopt a multipronged approach to ensure that beneficial ownership information can be determined in a timely manner.

Company Approach

Obligations

  • Obtain and maintain adequate, accurate, and up-to-date beneficial ownership information.
  • Make it available to competent authorities in a timely manner.

Public Authority or Body Approach

Requirements

  • Hold beneficial ownership information by a public authority or body (e.g., tax authority, financial intelligence unit, company registry, or beneficial ownership registry).
  • Not required to be held by a single body only. Countries may choose alternative mechanisms.
  • Ensure efficient access to beneficiary information.

Conclusion

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Beneficial ownership transparency is crucial in the fight against corruption, money laundering, terrorist financing, and tax evasion. This study reviews the international frameworks covering beneficial ownership in selected Asian and Pacific countries, highlighting the importance of implementing effective measures to ensure adequate, accurate, and current beneficial ownership information is available and accessible to competent authorities.

Recommendations

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  • Governments and financial institutions should prioritize implementing FATF Recommendation 24 and its revised Interpretive Note.
  • Consider adopting a multipronged approach to ensure that beneficial ownership information can be determined in a timely manner.
  • Explore alternative mechanisms, such as the company approach, public authority or body approach, to ensure efficient access to beneficiary information.

Sources

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