Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

According to FATF Recommendation 33, what type of information should countries ensure is available regarding legal persons?

1. Profitability of businesses

2. Market competition analysis

3. Beneficial ownership and control information

4. Regulatory compliance status

The correct answer is: Beneficial ownership and control information

The correct answer emphasizes the importance of beneficial ownership and control information concerning legal persons, as stipulated by FATF Recommendation 33. This recommendation is a critical element in the global effort to combat money laundering and terrorist financing. By ensuring that beneficial ownership information is readily accessible, countries can create greater transparency in their financial systems. This, in turn, helps authorities identify the individuals who ultimately own or control legal entities, making it more difficult for those engaged in illicit activities to conceal their identities and evade law enforcement. Beneficial ownership information includes details about the individuals who hold significant ownership stakes or control over a company, which is crucial for investigations into financial crimes. This transparency is essential not only for regulatory purposes but also for fostering accountability within corporate structures. The other options, while relevant in different contexts, do not address the specific requirements laid out by FATF regarding legal persons. Profitability of businesses and market competition analysis pertain more to economic evaluations rather than ownership disclosure, and regulatory compliance status focuses on adherence to legal standards rather than ownership transparency. Thus, understanding the significance of beneficial ownership and control information aligns directly with the goals of enhancing integrity and transparency to combat financial crime.