Using Data and Technology to Reveal Beneficial Ownership and Prevent Financial Crime

Featured Speakers :
WHEN : 09/09/2020 12:00 pm 1:30 pm ET

Complimentary webinar, courtesy of the Washington, D.C. Chapter of ACFCS. Part 4 of a 4-part series on beneficial ownership issues and challenges.

The U.S. Treasury-issued 2020 National Strategy for Combating Terrorist and Other Illicit Financing identifies the absence of requirements to collect beneficial ownership information as a “significant vulnerability” in the U.S. financial ecosystem. This remains consistent with the FATF’s December 2016 mutual evaluation on the U.S. which highlighted the lack of timely access to adequate, accurate, and current beneficial ownership information as a key deficiency of the US AML/CFT regime.

While there has been some progress since 2016 to address these technical deficiencies in verifying the identity of beneficial owners –and possibly more progress coming with legislative changes pending in U.S. Congress– the lack of legally-binding requirements to collect such information continues to hinder the efficacy of financial crime investigations.  Globally, the ability for illicit actors to make use of anonymous companies as a facilitation tool and to shield ultimate beneficial ownership (UBO) enables the financing of global insecurity and instability, illicit commerce, fraud, sanctions evasion, and other illicit financial and criminal activity.

Varied international and U.S. regulations requiring financial institutions to know the beneficial owners and understand control structures of customers presents major challenges, particularly given the lack of a central source of UBO information.  These institutions –and now, possibly gatekeepers– must be able to identify and verify beneficial owners, track changes of ownership, document the due diligence, and perform continuous sanctions and PEP screening to be ready to respond to any regulatory scrutiny.

In this final installment of the ACFCS beneficial ownership series we will explore core technology and data considerations for addressing beneficial ownership transparency which is aimed at protecting the U.S. financial system from criminal abuse, terrorist financing, money laundering and other financial crimes.

ACFCS thanks Eric Scofield, Partner at Abaxx Associates, LLC, and Nic Cardillo, Partner at Abaxx Associates, LLC for their support and coordination of this event.

This session is eligible for 1 CFCS credits.

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