Beneficial Ownership Due Diligence Requirements
The new FinCEN regulations requiring financial institutions to secure beneficial ownership information is fast approaching – May 2018. The US has been way behind in this regulatory area. As a result, money-laundering activity in the US is fairly common. The EU has fast outpaced the US with its 4th Anti-Money Laundering Directive, and with the UK’s initiation of an ownership registry for UK companies.
Prosecutors will scour through regulatory filings relating to beneficial ownership. It is a great source of information that can quickly focus a government investigation. Criminals will seek to circumvent the regulations and continue to employ corporate organizations in the British Virgin Islands and other locations where ownership information is not required. Customers that want access to the US financial system will be required to divulge important ownership information.
No comments:
Post a Comment