Compliance Corner: FATF, US Treasury Department

Editorial Staff

7 March 2022

FATF, US Treasury
The Financial Action Task Force has agreed a revised standard to combat how anonymous shell companies are misused, the intergovernmental organization has announced. The move comes as the activities of Russia-linked business owners and beneficial owners are under intense scrutiny.

The body has adapted rule changes on beneficial ownership for legal persons.

The amendments improve the quality of beneficial ownership information collected by governments. The changes enable efficient access by law enforcement bodies to this information and require improved international cooperation, the US Department of the Treasury said in a statement last week.

“We commend the FATF for its continued focus on strengthening beneficial ownership standards, which will aid all countries in identifying criminals and their funds hiding behind corporate structures, Secretary of the Treasury Janet L Yellen said in a statement. “By strengthening financial integrity, we can better protect the global financial system from corrupt officials hiding their stolen wealth and undermining transparency, accountability and democracy.”

“In light of Russia’s military aggression in Ukraine, it is more important than ever for the FATF, the global standard setting body for combating money laundering, terrorist financing, and WMD proliferation financing, to continue its work to strengthen financial integrity and enforce adherence to strong international standards that promote safety and security,” Yellen said.