FATF issues report to G-20

On July 6th, FATF issued a report of its activities and plans to the G-20, in advance of their meeting.

One thing of particular interest are two current initiatives that FATF noted:

 

In addition, the FATF is currently conducting two projects:

A joint research project with the Egmont Group to study the risk of abuse of certain types of corporate vehicles and professional intermediaries. This work will enable a better-targeted risk-based approach and potentially inform policy decisions to restrict focus to the most vulnerable forms. Completion is expected in October 2017;

A horizontal study on the enforcement and supervision of beneficial ownership obligations, focused on measures countries are currently taking to prevent, identify, and respond to corrupt or negligent intermediaries and professionals and seeking examples of potential best practices. Completion is expected in October 2017. 

These are in line, of course, with recent initiatives on beneficial ownership in the US and EU. The professional intermediaries (aka “gatekeepers”) project will be interesting to see where it leads – the US was called out in its Mutual Evaluation Report for its poor control over DNFBPs (designated non-financial businesses and professions), noting accountants, lawyers, real estate agents and corporate formation agents in particular.

Link:

FATF Report to G-20

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