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US rules to enhance UBO transparency

The U.S. steps into beneficial ownership transparency by making certain UBO information mandatory at incorporation and enforcing mandatory ongoing update.

The proposed Corporate Transparency Act (“the Act”), is the product of a working group between several USA based agencies in regards to the Banking Secrecy Act and The Anti-Money Laundering and combating the Financing of Terrorism  Act.

With the Act, the U.S. seeks to address the flagged issue of beneficial ownership transparency (noted by FinCen, the U.S: Senate and the FATF).
The Act seeks to ensure that legal entities registered in the U.S. will be required to disclose beneficial ownership.

Within the new obligations, this federal law will define some minimum standards for creation of entities upon incorporation (including corporate vehicles end LLCs) and to communicate changes to the FinCen, with the sole exception of formation/registration agents.

The Act defines Beneficial Owner as a natural person who “(i) exercises substantial control over a corporation or limited liability company; or (ii) has a substantial interest in or receives substantial economic benefits from the assets of a corporation or limited liability company.”

This is a third part of the saga of AML related bills, which include changes in the aforementioned Acts including the enhancement of powers granted to the Treasury, the possibilities to freeze assets and other measures to enhance transparency and facilitate the fights against corrupted acts. 

Source

https://financialservices.house.gov/uploadedfiles/hhrg-116-ba10-20190313-sd002_-_memo.pdf

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Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.

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