The Financial Action Task Force (FATF) has launched a public consultation on its updated Risk-Based Guidance to Recommendation 25 on Beneficial Ownership and Transparency of Legal Arrangements.
Feedback is welcomed from companies and other legal persons, financial institutions, designated non-financial businesses and professions (DNFBPs), non-profit organisations (NPOs), and other interested stakeholders, particularly on the following areas:
- Are there any other purposes of express trusts beyond what have been set out in the Guidance?
- Are there other potential scenarios concerning beneficiaries that should be included in this Guidance?
- What other activities may be included in the definition of trust administration, if any?
- Are there other additional mechanisms available to ensure access to beneficial ownership information in the context of trusts?
- What are the suggested approaches to identify, assess, and mitigate the ML/TF risks linked with different types of legal arrangements (trusts governed under domestic law, foreign trusts administered in the country, and foreign trusts having sufficient links with the country)? What trends can be identified?
- Under which circumstances would a non-professional trustee be chosen? Which types of trusts are typically administered by such non-professional trustees?
- How can countries achieve the obligations on non-professional trustees more effectively?
Comments and any drafting proposals are invited by 8 December