Beneficial Ownership Transparency: A Guide for Parliaments
How is Beneficial Ownership Transparency Governed Internationally?
In 2000, the G7 recognized the need for beneficial ownership information, charging the Organisation for Economic Co-operation and Development (OECD) with proposing mechanisms to ensure BOT. The Panama Papers leaks and the London Anti-Corruption Summit in 2016 thrust the issue into the spotlight. Since then, the focus on BOT governance has shifted to company disclosure to government-run registers, with the first going live in Ukraine and the U.K. in 2015 and 2016.
The same year, the Extractive Industries Transparency Initiative (EITI) introduced BOT-related requirements for companies in extractive industries, leading to the creation of sector-specific registers. For example, before the Corporate Affairs Commission in Nigeria implemented an economy-wide beneficial ownership register, the Nigeria EITI had already created one for corporate vehicles operating in the extractive sector. In Europe, Slovakia was one of the first countries to implement a publicly accessible beneficial ownership register in 2017 for companies participating in public procurement. By 2017, EU member states had to implement central BO registers under the EU’s fourth anti-money laundering directive. Some allowed public access – a requirement for all EU states by 2020 under the fifth anti-money laundering directive. In 2021, the United Nations Convention Against Corruption Conference of State Parties urged signatories to implement central beneficial ownership registers, and in 2022, the Financial Action Task Force (FATF) – the international standard-setting body to combat money laundering and terrorist and proliferation financing – effectively mandated central registers. States that do not comply risk being “gray-listed” by FATF with severe economic consequences as a result.
Currently, the majority of countries are planning, are implementing or have implemented central BO registers. BOT registers now extend beyond anti-money laundering, impacting anti-corruption, public procurement, taxation, resource governance, business environment improvement and national security. Evidence suggests that countries achieving more effective governance and reforms are those pursuing domestic policy goals, not just meeting FATF requirements.
"Currently, the majority of countries are planning, are implementing or have implemented central BO registers."