Hundreds of academics, civil society groups and business leaders join call for UN General Assembly to end anonymous shell companies

Hundreds of academics, civil society groups and business leaders join call for UN General Assembly to end anonymous shell companies
700 signatories from 120 countries ask UNGASS 2021 to set a new global standard on beneficial ownership transparency
24 February 2021
Transparency International today submitted an appeal to the UN General Assembly from more than 700 signatories calling for a new global standard for transparency in company ownership. The appeal comes ahead of the UN General Assembly Special Session Against Corruption, UNGASS 2021, scheduled for June. It asks that UNGASS 2021 commits all countries to set up national, public registers of companies, disclosing the real individuals who own, control or benefit from them.

The signatories include renowned academics and research centres, companies and business executives, civil society groups and activists as well as several government agencies and public officials.

“All parts of our societies around the world have spoken. From Afghanistan to Zimbabwe, from indigenous peoples’ groups to tax justice advocates, from distinguished diplomats to multi-national companies, we all agree: anonymous companies are vehicles for corruption and other illicit practices that jeopardise the common good. We are asking country representatives preparing for the UNGASS 2021 to heed this call for urgent action,” said Gillian Dell, Head of Conventions Unit at Transparency International.

Numerous investigative reports and scandals have shown that anonymous companies enable and fuel corruption and other financial crimes. The recent OpenLux investigations highlighted the power of public registers of beneficial ownership for identifying suspicions of money laundering, corruption, tax evasion and other criminal activity…

Petition
The UN General Assembly’s decision to hold a Special Session against Corruption in 2021 created a historic opportunity for the international community to address the global crisis of corruption.

The undersigned groups and individuals are united in the conviction that it is of the utmost urgency for the UNGASS 2021 to put an end to the abuse of anonymous companies and other legal vehicles that facilitate cross-border corruption and other crimes. We are calling on the UNGASS 2021 to commit to making centralised, public beneficial ownership registers a global standard.

Companies that exist only on paper, exploiting our legal systems and concealing their ultimate ownership, are tools for the diversion of critical resources needed to advance sustainable development and collective security.

For decades, as scandal after scandal has demonstrated, anonymous shell companies have been used to divert public funds, channel bribes and conceal ill-gotten gains, as part of corruption and money laundering schemes stretching across borders.

Beneficial ownership information – information on the natural persons who ultimately own, control or benefit from a legal vehicle – enables cross-border enforcement and the tracing of ill-gotten assets for confiscation and return. In public contracting processes, it helps in the detection of conflicts of interest and corruption. It also makes it easier for businesses to carry out due diligence, helps them know who their partners and customers are and meet reporting obligations.

A central, public register of companies and their ultimate beneficial owners – in addition to information on legal ownership and directors – is the most effective and practical way to record such information and facilitate timely access for all stakeholders.

We have come together to address government leaders currently preparing for UNGASS 2021 with one voice and one clear message: The “concise and action-oriented political declaration” to be adopted by the General Assembly should commit all countries to establish central, public registers of beneficial ownership as the new global standard. This should be supplemented with efforts to verify the collected information in order to ensure the accuracy and reliability of beneficial ownership data.

Transparency in company ownership is more than a technical solution to a problem. It is a matter of social justice.

Corruption devastates the lives of billions of people around the world, while its deadliness has become all the more evident during the COVID-19 pandemic and the climate crisis. With only ten years left to achieve the 2030 Agenda targets, we need decisive reforms to ensure that the resources needed to pay for critical public services such as schools and hospitals are not simply misappropriated and hidden away in tax havens or property markets abroad. Centralised, public registers of beneficial ownership as a global standard is precisely that kind of change.

The time for action is now.

The appeal is also available in French, Russian and Spanish.
Signatories listed here