Complex corporate structures are often utilised for legitimate reasons, such as preserving the confidentiality of wealthy individuals and their families or addressing the inherent dangers linked to large family businesses. However, these frameworks can also be exploited to cover unlawful activities, including money laundering, fraud, and tax evasion. Effective law enforcement relies on the ability to procure accurate beneficial ownership data from responsible institutions. As a result, they face significant challenges from this absence of transparency – furthering the need for opaque corporate structures.
There has been a growing demand for beneficial declarations to guarantee that institutions can access accurate, up-to-date, and verified beneficial ownership information to strengthen the battle against financial crime, and hence the introduction of a Beneficial Ownership Register, which is populated through the Company Beneficial Ownership Declaration process.