Legal persons and arrangements are prevented from misuse for money laundering or terrorist financing, and information on their beneficial ownership is available to competent authorities without impediments.

Characteristics of an effective system:

Measures are in place to:

• prevent legal persons and arrangements from being used for criminal purposes;
• make legal persons and arrangements sufficiently transparent; and
• ensure that accurate and up-to-date basic and beneficial ownership information is available on a timely basis.

Basic information is available publicly and beneficial ownership information is available to competent authorities. Persons who breach these measures are subject to effective, proportionate and dissuasive sanctions. This results in legal persons and arrangements being unattractive for criminals to misuse for money laundering and terrorist financing.