UBO system to put an end to tax evasion?
The majority of European Parliament members agree that it should be made compulsory for the business community to draw up a public register containing the names of actual owners in order to combat money laundering and tax evasion. It is hoped that the disclosure of the identities of those associated with a company, fund or foundation by virtue of such a system of registration of Ultimate Beneficial Owners (or UBOs for short) would stop tax evaders, drug dealers, counterfeiters and other delinquents dead in their illicit tracks.
Comments Green Party MEP, Judith Sargentini: “Money launderers and tax evaders have no greater enemy than transparency. The body of regulations we propose to implement will soon reveal the shady set-ups behind businesses to anyone who files a substantiated request for the relevant information.”
The proposed body of regulations is yet to be approved by the EU Member States, each of which will subsequently be expected within a two-year term to create such a UBO Register and reconcile their national legislation with the European regulations.