2. FATF goal (behind RQs on BO/ST)
Identity of known or suspected criminals
True purpose of an account or property held by a
corporate vehicle
Source or use of funds or property associated with a
corporate vehicle
3. Key Examples to Obscure BO/ST (1)
a) shell companies (which can be established with
various forms of ownership structure), especially in
cases where there is foreign ownership which is spread
across jurisdictions
b) complex ownership and control structures
involving many layers of shares registered in the name
of other legal persons
c) bearer shares and bearer share warrants
d) unrestricted use of legal persons as directors
4. e) formal nominee shareholders and directors where
the identity of the nominator is undisclosed
f) informal nominee shareholders and directors, such
as close associates and family, and
g) trusts and other legal arrangements which enable a
separation of legal ownership and beneficial
ownership of assets
h) use of intermediaries in forming legal persons,
including professional intermediaries
Key Examples to Obscure BO/S (2)
5. Effective AML/TF System Criteria
Basic information is available publicly.
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 legal arrangements
being unattractive for criminals to misuse for money
laundering and terrorist financing
6. BO notion (Legal Person)
Beneficial owner refers to the natural person(s) who
ultimately owns or controls a customer and/or the natural
person on whose behalf a transaction is being conducted.
It also includes those persons who exercise ultimate
effective control over a legal person.
Reference to “ultimately owns or controls” and “ultimate
effective control” refer to situations in which
ownership/control is exercised through a chain of
ownership or by means of control other than direct
control.
7. R24: LP Transparency&BO
To prevent the misuse of legal persons for ML/TF.
To ensure there is adequate, accurate and timely
information on the beneficial ownership and control of
legal persons (including cases of bearer shares/warranties,
nominal directors/shareholders) that can be obtained or
accessed in a timely fashion by competent authorities.
To consider measures to facilitate access to beneficial
ownership and control information by financial
institutions (in line with R10 & R22)
8. BO notion (Legal Arrangement)
Natural person(s), at the end of the chain, who ultimately
owns or controls the legal arrangement, including:
those persons who exercise ultimate effective
control over the legal arrangement, and/or
the natural person(s) on whose behalf a transaction
is being conducted
9. R25: LA Transparency&BO
To prevent the misuse of legal arrangements for ML/TF.
To ensure there is adequate, accurate and timely
information on LA (including information on the settlor,
trustee and beneficiaries of express trusts), that can be
obtained or accessed in a timely fashion by competent
authorities.
To consider measures to facilitate access to beneficial
ownership and control information by financial
institutions (in line with R10 & R22)
11. Migration to T2S: Key Dates
User testing (completed)
stared in August 2014
Community testing
2nd
of March 2015
First wave of migration
22nd
of June 2015
Second wave
28th
of March 2016
Third wave
12th
of September 2016
Final wave
6th
of February 2017
12. 4 Waves of Migration to T2S
First wave
22 June 2015
T2S Go Live
Second wave
28 March 2016
Third wave
12 September 2016
Fourth wave
6 February 2017
Bank of Greece
Securities Settlement
System (BOGS)
Euroclear Belgium Clearstream Banking
(Germany)
Centrálny depozitár cenných
papierov SR (CDCP) (Slovakia)
Depozitarul Central
(Romania)
Euroclear France KELER (Hungary) Eesti Väärtpaberikeskus (Estonia)
Malta Stock Exchange Euroclear Nederland LuxCSD (Luxembourg) Euroclear Finland
Monte Titoli (Italy) Interbolsa (Portugal) Oesterreichische
Kontrollbank (Austria)
Iberclear (Spain)
SIX SIS (Switzerland) National Bank of Belgium
Securities Settlement
Systems (NBB-SSS)
VP Lux (Luxembourg) KDD - Centralna klirinško
depotna družba (Slovenia)
VP Securities
(Denmark)
Lietuvos centrinis vertybinių
popierių depozitoriumas
(Lithuania)
BNY Mellon CSD (Belgium)
LCD - Latvijas Centralais
depozitarijs (Latvia)
13. Transparency regimes in EU
First layer/final layer holders of securities in CSDs
Account holders, end investors & shareholders
Stocks & Flows
14. EU Transparency* on Share Holdings
None info of holding:
NL, BE (bearer securities)
DE (bearer securities owned by foreign investor)
Limited by 1st
layer
CSD records: AT, EE, ES, IE, MT, SI, UK
Issuers’ access: AT, DE, ES, EE, FI, SE, SI
*up to date country status change since 2011 to be clarified
15. EU Transparency* on Share Flows
No real-time data on flows available to the issuers:
AT, BE, FR (bearer), HU, IT, LT, LV, NL, PL, PT, RO, SK
No inputs to maintain pre-AGM register:
DK, NO, PL, RO
*up to date country status change since 2011 to be clarified
Editor's Notes
In particular, countries that have legal persons that are able to issue bearer shares or bearer share warrants, or which allow nominee shareholders or nominee directors, should take effective measures to ensure that they are not misused for money laundering or terrorist financing. Countries should consider measures to facilitate access to beneficial ownership and control information by financial institutions and DNFBPs undertaking the requirements set out in Recommendations 10 and 22.
Migration Phase (June 2015 - February 2017)
Migration to T2S will take place in waves (including a contingency wave: foreseen by May 2017) beginning with the first wave in June 2015. The allocation of CSDs for each wave is available under the tab “Migration Weekends”.
The objective of the migration phase is to enable a smooth and successful transition to the usage of the T2S services for the CSDs, CBs and their communities. Several steps are required in preparation of the migration weekend, including readiness of the production environment (SP13) and the upload of common static data.
The different stages of the migration phase are outlined below.
SP14.x – Ready to
Connect to Production
SP14.x marks the confirmation by CSDs and CBs that they can technically connect to the T2S production environment. A connectivity guide has been provided to CSDs and CBs by the Eurosystem and there is a technical helpdesk in place for support during production.
SP15.x – Ready to
Upload Static Data
SP15.x marks the start of the upload of the Static Data to T2S. This refers to business information that is common to all T2S users. E.g. the SWIFT BIC Directory.
SP16.x – Ready for
T2S Go Live
SP16.x marks the last checkpoint before migration. All common static data has been uploaded. The organisation and timeline of the migration weekend have been defined, staff have been trained, and supporting documentation has been delivered to the CSDs and CBs.
Start T2S Operations
The T2S Go-Live date refers to the date at which the first group of CSDs start operations on the T2S platform. The migration phase will continue after this date, while the remaining groups of CSDs and other market participants migrate to T2S.
Synchronisation points (SP)
Definition
Throughout the planning of the T2S project, the notion of a Synchronisation Point is used. A synchronisation point is a point in time at which the T2S Programme is to reach a specific objective. The purpose of a synchronisation point is to monitor at foreseen time intervals that the progress of all parties is in line with the programme plan. There are 17 Synchronisation Points in total marking the achievement of significant milestones in the plan, for example the start of connectivity set-up and the start of the different testing phases. A short description of each Synchronisation Point is provided in each phase.
http://www.ecb.europa.eu/paym/t2s/progplan/html/index.en.html