How can gatekeepers like lawyers, notaries, and company service providers play a key role in the fight against money laundering?
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A. B. C. D.A
https://www3.weforum.org/docs/WEF_Gatekeepers_A_Unifying_Framework_2021.pdfGatekeepers such as lawyers, notaries, and company service providers can play a crucial role in the fight against money laundering. They are in a unique position to detect and report suspicious activities as they have direct access to client information and can provide services that are commonly used to hide illicit funds.
Option A is correct as gatekeepers like lawyers, notaries, and company service providers are responsible for identifying challenges in keeping current and accurate beneficial ownership information depending upon the nature and activities of their client. They should conduct proper due diligence to identify the beneficial owner(s) of a company, including the ultimate beneficial owner(s) (UBO) to determine who actually owns or controls a company or asset. They should verify the identity of the UBO and keep up-to-date information on file.
Option B is incorrect as facilitating tax optimization schemes by establishing trust and company structures in offshore locations is a common method used by money launderers to hide their illicit funds. Therefore, gatekeepers should not facilitate such schemes, and doing so could be considered aiding and abetting money laundering.
Option C is partially correct. Gatekeepers can provide a public fiduciary function by performing the role of trusted third parties, but this function is not directly related to the fight against money laundering. However, by performing this function, gatekeepers can identify suspicious activities and report them to the relevant authorities.
Option D is partially correct as implementing an internal AML program, which includes the detection and reporting of suspicious transactions is important. However, this alone is not sufficient. Gatekeepers should also conduct proper due diligence on their clients and their transactions, including verifying the source of funds and identifying potential red flags.
In summary, option A is the most appropriate answer as gatekeepers play a critical role in identifying challenges in keeping current and accurate beneficial ownership information. They should conduct proper due diligence, verify the identity of the UBO, and keep up-to-date information on file. In addition, they should implement an internal AML program, detect and report suspicious transactions, and avoid facilitating tax optimization schemes by establishing trust and company structures in offshore locations.