Proposed Amendments to the EU AML Package. Improving Beneficial Ownership Transparency

Abstract

On 20 July 2021, the European Commission presented a package of legislative proposals to strengthen the EU’s rules to tackle money laundering and to counter the financing of terrorism (AML/CFT). The package is now being discussed, so here are the Tax Justice Network’s proposals on how to improve the current draft Regulation and Directive regarding: the definition of a beneficial owner (BO); the scope of legal vehicles subject to registration; the conditions that should trigger beneficial ownership registration; the details to be registered on each BO; access to information; how to verify information; sanctions for non-compliance; and other miscellaneous issues (trustees, nominees). The report offers a brief point-by-point explanation of what should be improved, and why. It also offers a table with the Tax Justice Network’s proposed amendments (in bold) both for a partial improvement (left column) and towards the most transparent scenario (right column).