Beneficial ownership transparency: A fundamental reform to accelerate sustainable development

1. A global financing framework

Companies are embedded into all aspects of society and can be crucial for investment in sustainable development. Their proper functioning through transparency and accountability is therefore relevant to allowing all aspects of society to function and develop. As economies and legal systems have globalised and become more interconnected and complex, so too has corporate ownership and control. This has enabled new avenues for individuals to obscure their ownership and misuse corporate vehicles.

The risks of illicit finance were recognised in the Pact for the Future and the Addis Agenda, which state that “measures to combat corruption and curb illicit financial flows will be integral to our efforts”, [6] and commit to “redouble efforts to substantially reduce illicit financial flows by 2030, with a view to eventually eliminating them”. [7]

Done well, a global system of BO disclosure will provide a solid foundation of data, ensuring that complexity can be a driver of innovation rather than an enabler of illicit financial flows (IFFs) or unfair or illegal practices. We need to reconceive how we view BOT reforms, and highlight the fundamental importance that knowing who owns and controls companies has for our future economies and societies.

Next page: 2. Action areas