Ultimate Beneficial Ownership Case Study
The Rationale of Ultimate Beneficial Ownership
Transparency is important for the investor because it will ensure them to put their money in a good place. In addition to that, some of the company has multiple layers and have companies overseas that located in tax haven countries such as Cayman Islands, Seychelles, and British Virgin Islands (“BVI”). The Special Purposes Vehicles in that tax haven countries is could misuse for tax evasion and money laundering. The furtiveness and opaque company ownership structures which still the main issue that lead to corruption. According to the United Nations, the amount of money laundering in the world can reach up to US$ 2 trillion and the most money laundering case is happen in the emerging market and developing countries. To break the vicious cycle of illicit money flows and money laundering, Transparency International is encouraging that every country have the registries of beneficial ownership information. The registries will show and indicate the person who controls a company and hopes that action may increase financial transparency and help to stop the corrupt. …show more content…
Beneficial Ownership (“BO”) terms first introduce in the United Kingdom. As long as growth of trust law, types of ownership is developed and divided into two which are legal ownership and beneficial ownership:
“The legal ownership of the trust-property is in the trustee, but he holds it not for his own benefit but for that of the cestui que trustent or the beneficiaries. On the creation of a trust in the strict sense as it was developed by equity, the full ownership in the trust property was split into two constituent elements, which became vested in different persons: the “legal ownership” in the trustees, and what became to be called the “beneficial ownership” in the cestui que trust [that is, the beneficiary].
Transparency is important for the investor because it will ensure them to put their money in a good place. In addition to that, some of the company has multiple layers and have companies overseas that located in tax haven countries such as Cayman Islands, Seychelles, and British Virgin Islands (“BVI”). The Special Purposes Vehicles in that tax haven countries is could misuse for tax evasion and money laundering. The furtiveness and opaque company ownership structures which still the main issue that lead to corruption. According to the United Nations, the amount of money laundering in the world can reach up to US$ 2 trillion and the most money laundering case is happen in the emerging market and developing countries. To break the vicious cycle of illicit money flows and money laundering, Transparency International is encouraging that every country have the registries of beneficial ownership information. The registries will show and indicate the person who controls a company and hopes that action may increase financial transparency and help to stop the corrupt. …show more content…
Beneficial Ownership (“BO”) terms first introduce in the United Kingdom. As long as growth of trust law, types of ownership is developed and divided into two which are legal ownership and beneficial ownership:
“The legal ownership of the trust-property is in the trustee, but he holds it not for his own benefit but for that of the cestui que trustent or the beneficiaries. On the creation of a trust in the strict sense as it was developed by equity, the full ownership in the trust property was split into two constituent elements, which became vested in different persons: the “legal ownership” in the trustees, and what became to be called the “beneficial ownership” in the cestui que trust [that is, the beneficiary].