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
Ernesto U. Savona
Mario A. Maggioni
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.