Conducting Deeper Due Diligence to Uncover Beneficial Ownership
Businesses are under increasing pressure—both legislative and from the public—to ensure that they conduct business ethically. While in the past the financial sector received the lion’s share of attention, these days the focus has extended along the supply chain and to corporate partnerships.
The recent Panama Papers leak has once again brought public attention to the issue of who is the ultimate beneficial owners of a company and how difficult this can be to discover. Who owns the companies you do business with? Who ultimately benefits from the profits they make? With no single global beneficial ownership register of who the ultimate beneficial owner of a business is, companies have a responsibility to conduct due diligence to find out.
According to the Financial Action Task Force: “Beneficial ownership refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement.”
Every business needs to understand the significance of who has beneficial interest in the businesses that it deals with and implement due-diligence programs that promote the discovery of tax evasion and legislation.
LexisNexis has created a white paper to help businesses navigate through the issues around beneficial ownership. The Hidden World of Beneficial Ownership provides insight into:
- The reality of complex ownership trails
- The importance of transparency in beneficial ownership
- The significance of enhanced due diligence to protect against risk
- Steps for improving due-diligence processes
- Relevant local, regional and global beneficial ownership rules
Fill out the form at the right to access the white paper now.