Beneficial Ownership of Legal Persons (Recommendation 24)

The FATF has agreed on tougher global beneficial ownership rules to stop criminals from hiding their illicit activities and dirty money behind secret corporate structures.

These will close loopholes and regulatory weaknesses that – for too long - have allowed fake companies be used as a cover for criminal activity or to hide wealth from tax authorities.

They will ensure that investigators can quickly and easily find out who the true ‘beneficial’ owners of companies are. The changes will help prevent and combat financial crime, curb corruption and tax evasion and support sustainable economic growth.  

 

Public Statement on revisions to R.24

3 Mar 2022

The revisions to Recommendation 24 will require countries to follow a risk-based approach and consider the risks of legal persons in their countries. The adopted changes to Recommendation 24 will significantly strengthen the global response to tackling concealment of beneficial ownership of legal persons.
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In February 2023, the FATF agreed a guidance document which will help countries implement the revised requirements of Recommendation 24. This also includes assessing and mitigating the money laundering and terrorist financing risks associated with foreign companies to which their countries are exposed. This guidance is the result of several months of intense consultation with external stakeholders and the private sector to ensure that the guidance is clear and addresses the questions that stakeholders in the public and private sectors may have. The guidance aims to facilitate the implementation of the necessary measures so that shell companies can no longer be a safe haven for illicit proceeds with links to crime or terrorism. 

Guidance on Beneficial Ownership of Legal Persons

10 Mar 2023

This FATF guidance will help countries implement the revised Recommendation 24.

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Guidance on Beneficial Ownership of Legal Persons

Webinar: Beneficial Ownership Transparency of Legal Persons

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The FATF organised a webinar which focused on the changes to Recommendation 24 on beneficial ownership of legal persons, which aims to help stop criminals from hiding their illicit activities and dirty money behind secret company structures.  The webinar brought together a panel of experts with a global and domestic focus on enhancing beneficial ownership transparency who helped shape the FATF work in this area. The discussions focused on the following topics:

  • New FATF obligations on beneficial ownership (BO) transparency - objectives and rationale;
  • National experiences, challenges, and lessons-learnt in conducting collecting BO information and developing appropriate mitigation strategies; and
  • Role of private sector – what can be done further to enhance adequacy, accuracy and timeliness of BO information
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Beneficial Ownership of Legal Arrangements (Recommendation 25)

In February 2023, the FATF also agreed on enhancements to Recommendation 25 on legal arrangements to bring its requirements broadly in line with those for Recommendation 24 on legal persons to ensure a balanced and coherent set of FATF standards on beneficial ownership.  In doing so, the FATF sought input from relevant stakeholders, including through a White Paper consultation and a public consultation on proposed changes.

The FATF has started work on a guidance document to help countries implement the revised requirements of Recommendation 25.

 

The FATF Recommendations

10 Mar 2023

The FATF Recommendations are the basis on which all countries should meet the shared objective of tackling money laundering, terrorist financing and the financing of proliferation. The FATF calls upon all countries to effectively implement these measures in their national systems.
The FATF Recommendations

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