The misuse of corporate vehicles, including trust and company service providers

On behalf of the Dutch delegation Jan van Koningsveld took part in a commission for the FATF. The FATF had conducted an examination of the ways in which Corporate Vehicles (legal entities, including corporations, trusts, foundations and partnerships with limited liability) can be exploited for money laundering or terrorist financing purposes. The study focuses on what is considered to be the most significant feature of their misuse – the hiding of the true beneficial owner.

The study of corporate vehicles found evidence of their misuse for money laundering / terrorist financing. The report identifies a number of risk factors and concludes that this misuse could be significantly reduced if governments have access to information about the beneficial owner, the source of assets, and the business objective of the company or trust.

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