The company has a name. But who really owns it?

From a registered name to a real person

A company’s registered shareholder may be another company. Understanding beneficial ownership means tracing the structure to the natural person who ultimately controls or benefits from it. The relationship between ownership on paper and control in practice lies at the heart of the transparency debate.

Why does FATF focus on this?

FATF strengthened its standards on the beneficial ownership of legal persons in March 2022. Guidance published in 2023 explains an approach intended to give competent authorities access to adequate, accurate and up-to-date ownership information.

The aim is to prevent companies and complex structures from being misused to conceal criminal proceeds or actual control. This does not mean every layered ownership structure or offshore company is unlawful.

Questions to ask when reading a report

Alongside “Where is it registered?”, ask “Who controls it, what is the source of that information, and when was it verified?” A corporate ownership chart is only as reliable as its underlying records and dates. Distinguish documented connections from assumptions.