Who owns what_ trying to clean dirty money in the eu _ space for transparency

The European Union’s anti-money laundering rules are currently being revised, with new recommendations to be announced in 2013. Purpose of money laundering Teodorin Obiang’s life of luxury in Paris shows that the EU’s rules need to be a lot stronger if they are to be an effective tool against the corrupt.

A crucial area in the fight against money laundering in need of significant attention is identifying beneficial ownership. Is money laundering illegal A beneficial owner is the individual who ultimately owns the funds in an account or enjoys the profits made by a company.


Money laundering in the uk This individual is not necessarily the person who opened the account or the one named on the company register, but rather is the person with ultimate control over funds or a company, and the one that enjoys their fruits. Miami money laundering Identifying this individual allows an institution to determine whether the source of funds is legitimate or not.

Currently, to identify the beneficial owner of an account or company, banks use a threshold of 25%. Money laundering certification If someone is identified as owning a proportion larger than 25%, they are a beneficial owner. Money laundering texas This means that in order not to be identified as a beneficial owner, all an individual need do is structure a company or account so that they own less than 25%. Federal money laundering Article 43 of the current money-laundering Directive requests the European Commission to consider lowering this threshold to 20%. Insurance money laundering In a report released on Thursday however, the Commission said that lowering the threshold to 20% may only increase the cost of compliance and create administrative burden, rather than bringing about any significant advantages. Laundering of money This is worrying. What does placement mean in money laundering Whilst a lower threshold for identifying a beneficial owner could still be circumvented comparably easily, it would nevertheless require a greater level of diligence by an institution.

Another area of contention is whether beneficial ownership information should be made readily available, and if so, in what format. Anti money laundering identification requirements The European Commission’s recent report states that an absence of available information about business registrations is hindering implementation of anti-money laundering requirements.

An interesting development that the Commission could consider is a recent act passed by France concerning the registration of trusts. What do you understand by money laundering This act obliges trustees to identify the beneficiaries of a trust whenever one of them is resident in France, or an asset of the trust is located in France. Money laundering uk sentences The registration requires a variety of information to be divulged to French authorities, including tax information and a statement indicating the value of the assets. Anti money laundering definition Obviously, such transparency would make it much harder to get away with laundering the proceeds of corruption.