The timing seems unwelcome with the rise in financial crime related to the pandemic.

Due to the pandemic and the considerable sums for emergency funds circulating, the threat of financial crime continues to increase, according to the moneyLaundering website .com. In response, Chartered Professional Accountants of Canada (CPA Canada) and the International Federation of Accountants (IFAC) have published a report on an essential element for detecting illegal activities and combating their proliferation: transparency of beneficial ownership.

"Beneficial ownership information, which allows you to know who has a controlling interest in an entity, is an important part of uncovering financial crimes," said Joy Thomas, President and CEO of CPA Canada. The transparency of this information will strengthen anti-money laundering regimes and facilitate the identification of offenders and proceeds of crime. »

Entitled Beneficial Ownership Transparency: A Global Framework and Perspectives from the Accounting Profession, the report comes at a time when countries are reviewing measures and how information is collected, studied and published.

The report examines, inter alia, compliance with the recommendations of the Financial Action Task Force (FATF) on transparency and beneficial ownership information from various countries and looks at the extent to which the different models of beneficial ownership transparency are adapted to the ongoing transformation, from the point of view of professional accountants in different countries. This study led to three conclusions :

Adopting a public beneficial ownership registry does not immediately ensure that law enforcement agencies and other competent authorities have access to accurate and timely information;
In several jurisdictions, the adoption of a public registry has been carried out in stages, initially involving the use of non-public registries;
Verification of and appropriate access to information are key factors in the effectiveness of any registry.

"The global accounting profession is actively involved in the fight against financial crime, especially since its primary mandate is to protect the public interest," said Kevin Dancey, Executive Director of IFAC. We are committed to fostering policy debate, including on the issue of beneficial ownership, and to continuing our fruitful collaboration with governments, law enforcement and other stakeholders to combat financial crime in all its forms.