20 March 2022
Topic : Identification of Beneficial Owner (BO) ?
1) Why Reporting Institution and Financial Institutions need to identify BO?
A) The main reason for identifying the UBO is that it enhances a business' regulatory compliance position. Conducting thorough due diligence will also help identify any individuals who have been previously flagged with money laundering activities.
B)ask yourself- To what extent do you know the ownership structure and control structure of the entities?
C) Money launderer/ Fraudster / Corrupted person will always hiding or conceal their identity by complex structure or controlling
2) Lesson Learned?
Panama Papers (2016)
Paradise Papers (2017)
Pandora Papers (2021)
3.8 Billion Govt Project CARTELS( 2021)
3) How to identify BO?
Rule no 1- BO must be a person and cannot be an entity.
Rule no 2- Identify individual holding 25% interest/ ownership and above (Direct and Indirect interest /ownership). Have you validate the info? .If no person holding 25% then only move to rule no 3.
Rule no. 3 - individual who has controlling power on the entity (such as authorized signatory or have influence to appoint or remove any Directors / Senior Management. Have you validate the info? If cannot identify...move to rule no 4.
Rule no 4- Senior Management of the entity such as CEO or equivalent, COO or equivalent,CFO or equivalent, Chairman, Secretary or Treasurer, depends on the structure of the entity.
Tips to identify BO ; (ask yourself);
1) Have you demonstrate your best effort in identifying the BO.
2) Do you really you know the ownership structure and control structure of the entities?
Sir Nazri
Kuala Lumpur
#awareness #education #FollowTheMoney #dakwah #beneficialownership
