Our summary
Published in March 2023, this FATF guidance supports the revised Recommendation 24 on the transparency and beneficial ownership of companies and other legal persons. It explains the “multi-pronged” approach, where ownership information comes from several sources — including the company itself and a public registry or similar mechanism — and why this works better than relying on one source.
It is written for policymakers and authorities, but also for private sector firms. It covers types and sources of ownership information, how to obtain it, and how to assess risks from foreign companies.
How auditors use it: Use it to judge whether the organization’s beneficial ownership checks on customers, suppliers and partners match the international standard, and to spot shell-company red flags.