Cost Benefit Analysis of Transparency Requirements in the Company/Corporate Field and Banking Sector Relevant for the Fight Against Money Laundering and Other Financial Crime

Bodies
Commissione Europea

Edited by
Ernesto U. Savona
Mario A. Maggioni
Barbara Vettori

The aims of the study were:

1. To analyse the cost-benefits from the introduction at the EU level of an up-front and ongoing disclosure system in the company/corporate field (from now on, MODEL 1) made up of the following five transparency requirements relevant for the fight against money laundering and other financial crime:

• a statutory duty on the registered owner of a shareholding of 10% or more of the issued capital of a private or public unlisted company to confirm to the company their beneficial ownership of such shares or, if not, details of whom they believe the beneficial owner (BO) to be;
• a statutory duty on beneficial but not registered owners of a shareholding of 10% or more to notify the company of such beneficial ownership and, for registered and beneficial owners of 10% or more, any changes in details as and when they occur;
• a statutory duty on the company to file such data with a central registry within a short period;
• the making such information available on-line to LEAs along with actual and historic data on company shareholders and their managers/directors;
• making such data available to the public.

2. To highlight:

• what EU measures may be appropriate to address those who aid and abet/facilitate corporate money laundering/terrorist financing arrangements, especially professional service providers, to contribute to more effective deterrence or (if not) suitable punishment, and
• any issues and approaches revealed in the study likely to help improve the regulation of charities, trusts, associations and foundations with regard to AML and CFT.