Disclosure of information about the beneficial owner and the principle of transparency in corporate governance

Abstract

The article considers the dynamics of the modern world, where globalization determines economic and financial relationships, the concept of "beneficial owner” becomes the key in the context of international financial structures. This topic is of considerable interest and debate as the identification of the true owner and user of financial resources becomes more difficult due to the development of diverse business models and financial instruments. At present, transparency of beneficial ownership is considered as a key aspect of policy in the fight against illegal financial flows, which include cross­border financial transactions aimed at money laundering, tax evasion; corruption and terrorist financing. Without transparency of beneficial ownership, criminals are able to participate in illegal activities, hiding it behind legal entities or nominal owners. Abuse of corporate secrets can be prevented by identifying, registering and disclosing information about individuals who exercise decisive influence or control over the activities of legal entities, such as companies, partnerships, trusts or similar legal entities. The issues of creating entities with a transparent ownership structure, reducing the level of corruption, disclosing the real owners of certain companies to society, preventing and counteracting the legalization of illegal income by officials of all levels continue to be a priority in Ukraine. In particular, countries in which legal entities may issue bearer shares or bearer warrants, or in which nominal shareholders or nominee directors may exist, should take effective measures to ensure that they are not used to launder funds or finance terrorism. This article examines the role of the beneficial owner in international financial structures, revealing the essence of the concept, its meaning and impact on financial processes. The study is aimed at revealing the key aspects related to the definition of the beneficial owner, its role in preventing aggressive tax planning, as well as in the context of compliance with international norms and standards in the field of financial transparency.