As a result of the COVID-19 pandemic and the unprecedented sums of relief money moving across the global economy, the threat of financial crimes and malfeasance continues to grow. In this context, CPA Canada and the International Federation of Accountants (IFAC) today published a report that explores a key facet of uncovering and fighting illegal activities: beneficial ownership transparency.

The fight against money laundering, corruption and tax evasion requires the participation of several stakeholders, including accountants, who rely on strong legal frameworks and accurate information.

“Beneficial ownership information, which identifies who has controlling ownership of an entity, is important to the discovery of financial crimes,” said CPA Canada President and CEO Joy Thomas. “Enhancing the transparency of this information should strengthen anti-money laundering regimes and help in seeking out lawbreakers and their proceeds of crime.”

The report, “Approaches to Beneficial Ownership Transparency: The Global Framework and Views from the Accounting Profession”, contributes to the global conversation as countries grapple with questions regarding the extent to which, and by whom, beneficial ownership information is collected, reviewed and made available. Central to this discussion is the concept of beneficial ownership registers and registries.

In examining how various countries are complying with the recommendations from the Financial Action Task Force (FATF) on transparency and beneficial ownership information, and with the perspectives of senior accounting leaders across the globe, the report finds that:

• Establishing a public beneficial ownership registry does not immediately ensure that a country’s law enforcement and other agencies have access to accurate information in a timely manner. 
• In several jurisdictions, the move to a public registry has been a phased approach, starting with non-public registries and then transitioning to public registries; and
• Verifying information and ensuring appropriate levels of access are key factors in a registry’s efficacy.

“The global accountancy profession, with its strong public interest mandate, is a committed partner in the fight against financial crime,” said Kevin Dancey, IFAC CEO. “We are eager to advance important policy conversations, including those over beneficial ownership, and to work meaningfully alongside governments, law enforcement and other stakeholders to combat financial crime in all its forms.”

With this report, the authors offer considered insights on the most effective ways to comply with international anti-money laundering standards. To view the first report, visit:  cpacanada.ca/beneficialownership.

About IFAC
The International Federation of Accountants (IFAC) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About CPA Canada
Chartered Professional Accountants of Canada (CPA Canada) represents the Canadian accounting profession, both nationally and internationally. Operating in the highly complex and global accounting ecosystem, CPA Canada is a convener, facilitator, contributor and disseminator of information that advances the profession. The organization works closely with the provincial, territorial and Bermudan CPA bodies to champion best practices that benefit business and society. With more than 217,000 members, CPA Canada is one of the largest national accounting bodies in the world. The organization supports the setting of accounting, auditing and assurance standards, advocates for economic and social development in the public interest, and develops leading-edge thought leadership, research, guidance and educational programs. cpacanada.ca

For more information:
Perry Jensen
Media Relations Manager
Chartered Professional Accountants of Canada
Tel: 416-204-3941
Cell: 647-807-4798
Email: pjensen@cpacanada.ca

Geena De Rose
IFAC Communications
Tel: 646-277-9390
Email: geenaderose@ifac.org

Jeffrey Matsu is Chief Economist at the Chartered Institute of Public Finance and Accountancy (CIPFA). With extensive experience in connecting policy with practice through evidence-based research, he works with partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.

Previously, Jeff was responsible for market analysis and thought leadership at the Royal Institution of Chartered Surveyors and co-led the economy theme at the UK Collaborative Centre for Housing Evidence (CaCHE).

He was also a senior economist at Morgan Stanley and served on the research staff at the Board of Governors of the Federal Reserve System in Washington DC.

Jeff holds degrees in economics from the University of Washington and Johns Hopkins University.

Professional accountants in business and the public sector have important roles to play in leading their organizations through the current crisis and the challenging times ahead. IFAC and its members are focused on supporting accountants as they navigate these uncertain times, and as they address other ongoing opportunities and challenges facing the global profession.

To continue this conversation, the latest report from the IFAC Professional Accountants in Business (PAIB) Committee is now available: Supporting Accountants in Business & Public Sector Through Uncertain Times. It includes highlights from the 2-day virtual meeting of the PAIB Committee, which focused on key topics of relevance to accountants in business, including: 

• Value creation and integrated thinking;
• Latest recruitment trends, evolving accountancy roles, and implications on learning and development;
• Key areas of data for PAIBs;
• Areas of innovation in public sector finance and accounting; and
• Guidance on expanding PAO membership.

Access the report here.

Today, IFAC published a ‘Small Business Continuity Checklist – How to Survive and Thrive Post Covid-19’.

Small businesses have been disproportionately affected by the COVID-19 pandemic. Most organizations worldwide are small in size, and the importance of small businesses to the global economy is indisputable.

COVID-19 containment measures severely impacted cashflows, disrupted supply chains and put small business survival at risk on an unprecedented scale. Governments worldwide moved quickly to deploy supportive measures for small businesses and entrepreneurs to help them maintain short-term liquidity. However, many are still struggling.

Small- and medium-sized practices (SMPs) have in-depth knowledge of their clients and provide vital guidance for navigating these uncertain times. Research indicates the business advice provided to small businesses from their professional accountant is associated with improved rates of survival, growth, improved decision-making procedures and superior financial performance.

Poor financial management is a leading reason why businesses fail. The Checklist covers key financial management and strategic management tasks, helping businesses to proactively identify and consider essential and timely information.

Many businesses are looking for the “next normal” and a new approach to resilience. Early on, the pandemic accelerated digitization and transformed small businesses responding to drastic consumer behavior shifts. A small businesses ability to survive the current environment, and thrive in the future, will be greatly strengthened by support from their professional accountant.  

The Checklist is included on IFAC’s dedicated COVID-19 web page with many other useful resources.