Coverage of corporate vehicles in beneficial ownership disclosure regimes

Conclusion

Corporate vehicles of different kinds are fundamental to facilitating certain social and commercial activities, but the unique rights they are granted also present the potential of their misuse. Requiring corporate vehicles to disclose BO information helps ensure appropriate oversight and accountability to meet specific policy aims. To meet the broadest set of policy aims, including AML/CFT, all corporate vehicles through or by which assets can be owned, benefitted from, and controlled should be covered by BO disclosure requirements.

Therefore, the coverage of a disclosure regime should be set out in broad and general terms in law, with catch-all clauses accounting for potential future changes. Explicit and narrow exemptions for certain categories of corporate vehicles can be used to ensure the requirements placed on those with an obligation to disclose are appropriate and proportional to meeting policy aims. The data system a jurisdiction designs to support BO disclosures should completely and accurately capture BO information for all corporate vehicles, and this should be easily accessible to a broad range of users. In taking these steps, jurisdictions can ensure a comprehensive approach to coverage. Comprehensive coverage can more effectively enable government agencies, businesses, and citizens to access and use accurate, complete, and high-quality information on the true owners of companies to achieve accountability in ownership.