Beneficial Ownership Transparency: A Guide for Parliaments
Introduction
The spotlight on anonymously owned companies and other corporate vehicles has intensified globally in recent years, revealing their pivotal role in facilitating illicit financial flows and corruption. Currently, most countries have committed to curbing the use of such entities by establishing platforms for disclosing information about the individuals who ultimately own, control or benefit from them. Governments worldwide have responded with laws and regulations on beneficial ownership transparency (BOT), with over 100 countries either having established or being in the process of creating central registries of beneficial owners, and over half of these providing access to this information to the general public in some form.
For BOT reforms to make a significant impact, specific standards are crucial – ensuring that beneficial ownership information is not just adequate but also accurate, verifiable and up to date. These reforms must encompass effective, proportionate, dissuasive and enforceable measures and sanctions for noncompliance. Accessibility to and use of information is paramount, extending to relevant stakeholders such as law enforcement, anti-corruption bodies, tax authorities, procurement agencies, electoral authorities, ethics bodies for politically exposed persons, and civil society. Parliaments, crucial in shaping a robust legal and regulatory framework, play a pivotal role in ensuring these standards are not only established but also adhered to in practice. This involves adapting existing laws or registries and closing legislative or regulatory gaps and loopholes to meet international standards.
Despite the critical role of parliaments, there is currently limited guidance on their involvement and best practices. This primer aims to help fill that void by addressing the role of legislatures in enacting and implementing effective BOT legislation. It outlines the main attributes of a robust BOT legal framework, emphasizing transparency and participation in policymaking. Furthermore, the guide identifies entry points for enhanced parliamentary oversight. Additionally, it includes references to resources that can aid legislators and parliamentary staff in building their expertise on beneficial ownership.