FATF responds to Pandora Papers with new 'multi-pronged approach'

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FATF responds to Pandora Papers with new 'multi-pronged approach'

The FATF has outlined what it calls a "multi-pronged approach" to collection of beneficial ownership information in a direct response to the Pandora Papers , after its latest plenary session which finished yesterday (21 October).

Its consulation ranges across measures to prevent the abuse of bearer shares and nominee arrangements, the risk-based approach and access to accurate, adequate and up-to-date information on beneficial ownership by competent authorities.

It specifically proposed that countries be required to assess the AML/CTF risks associated with foreign-created legal persons, and take steps to manage and mitigate them.

FATF said: "Recent revelations in the Pandora Papers once again underscore the importance of ensuring transparency about the true beneficial ownership of companies to stop criminals from hiding their illicit activities and proceeds behind complex corporate structures.

These revelations echo the results of the FATF's mutual evaluations and other major investigations: countries need to do more to ensure that information on beneficial ownership is available and up to date."

In June 2021, the FATF issued a white paper for public consultation on potential amendments in key policy areas to strengthen the requirements of Recommendation 24 on the transparency of beneficial ownership of legal persons.

The input received informed proposed changes to the language of Recommendations 24, its interpretive note and the glossary, which the FATF Plenary approved for public consultation.

The FATF Plenary said it welcomed views on these proposed amendments, which are published on the FATF website, "in particular on the multi-pronged approach to collection of beneficial ownership information, measures to prevent the abuse of bearer shares and nominee arrangements, the risk-based approach and access to accurate, adequate and up-to-date information on beneficial ownership by competent authorities".