Beneficial owner in the context of FATF activities

Abstract

The article deals with the understanding of the beneficial owner in the context of FATF documents. The FATF is an international organization that fights a wide range of financial crimes, in particular money laundering and terrorist financing. Particular attention is paid to the definition and disclosure of beneficial owners, who are key figures in financial transactions. According to FATF documents, a “beneficial owner” is understood as an individual who ultimately owns a legal entity, exercises control over its activities or on behalf of which all operational activities of a legal entity are carried out. In the fight against money laundering and terrorist financing, revealing the identity of beneficial owners is an important step. It is emphasized that the use of the category of beneficial owner in FAFT documents, and, accordingly, in activities related to counteracting the legalization of funds obtained by criminal means, makes it possible to establish the exact origin and direction of financial flows that can be used for criminal activity.
 The FATF develops standards and practical recommendations for the disclosure and identification of beneficial owners, which are then implemented by its member countries. It is concluded that the disclosure of information about the beneficial owner not only contributes to the fight against criminal activity, but also contributes to the transparency, trust and efficiency of the financial system as a whole. It is positively assessed that disclosure of information helps investors, banks and other market participants to make informed decisions in financial transactions. It is noted that the disclosure of information about the beneficial owner counteracts the use of tax evasion schemes, the use of services of nominal owners, the legalization of illegal income, etc.
 Disclosure of beneficial owner information is an important element in combating money laundering, terrorist financing and ensuring transparency and efficiency of the financial system. This helps to prevent the legalization of illegal income and protect the financial system from criminal acts.