The days of financial institutions simply reviewing who the people or legal entities are on an account are quickly disappearing.
New beneficial ownership are rules becoming significantly more onerous than those currently on the statute books, all geared towards a global drive for greater transparency and accountability. Managing beneficial ownership information for corporate or entity clients can feel like tackling an escalator running in the opposite direction.
As anti-money laundering (AML) programs require increased monitoring to verify the true identity of a bank’s customers, in the U.S. FinCEN regulations have proposed the “Beneficial Ownership” requirement, which mandates that covered financial institutions identify the true owners of the legal entity on the account. In Europe The Fourth EU Money Laundering Directive (“4AMLD”), requires national laws which comply with the directive to be enacted in all member states before June 26th, 2017. The Directive requires companies (or other legal persons) to hold adequate, accurate, and current information on their own beneficial ownership.
The penalties for getting it wrong extend from damage to your organisation’s reputation, right through to potentially significant personal liability to yourself.
Achieving Beneficial Ownership compliance
A unified risk, fraud and compliance management platform, underpinned by risk analytics, can help Financial Institutions achieve beneficial ownership compliance and combat a range of financial crime threats around the world, in a manner which is demonstrably effective and efficient.
In this paper we explore how that can be true and outline the initial steps you should take towards achieving beneficial ownership compliance.