Paris, 31 October 2023 - At the February 2023 Plenary, the Financial Action Task Force (FATF) adopted amendments to Recommendation 25, and agreed to immediately start the work to update guidance on Recommendation 25, with a view to help support the implementation of the new requirements.
The FATF now welcomes comments to its updated Risk-Based Guidance to Recommendation 25 on Beneficial Ownership and Transparency of Legal Arrangements.
We seek views from companies and other legal persons, financial institutions, designated non-financial businesses and professions (DNFBPs), and non-profit organisations. However, contributions from other interested stakeholders are also solicited. In particular, comments are welcome on the following specific issues:
- Are there any other purposes of express trusts beyond what have been set out in the Guidance?
- Are there other potential scenarios concerning beneficiaries that should be included in this Guidance?
- What other activities may be included in the definition of trust administration, if any?
- Are there other additional mechanisms available to ensure access to beneficial ownership information in the context of trusts?
- What are the suggested approaches to identify, assess, and mitigate the ML/TF risks linked with different types of legal arrangements (trusts governed under domestic law, foreign trusts administered in the country, and foreign trusts having sufficient links with the country)? What trends can be identified?
- Under which circumstances would a non-professional trustee be chosen? Which types of trusts are typically administered by such non-professional trustees?
- How can countries achieve the obligations on non-professional trustees more effectively?
Please provide your comments, including any drafting proposals, to FATF.Publicconsultation@fatf-gafi.org with the subject-line “Comments of [author] on the draft Amendments to FATF Guidance on Beneficial Ownership (R.25)”, by 8 December (18h00 CET).
While submitting your response, please indicate the name of your organisation, the nature of your business, and your contact details. You may insert any specific drafting proposals directly in the attached text of the draft guidance in tracked changes.
We will use your contact information only for the purpose of this public consultation and for further engagement with you on this issue. Your comments will also be shared with the FATF delegations in the course of further revision of the Guidance, unless you indicate otherwise. The FATF will, however, not share this information with third parties without your consent.
The FATF will consider the views received at its February 2024 Plenary.
We thank you for your contribution and interest in FATF’s work.