76. Institutions should avoid setting up complex and potentially non-transparent structures. …

Institutions should avoid setting up complex and potentially non-transparent structures. Institutions should take into account in their decision-making the results of a risk assessment performed to identify whether such structures could be used for a purpose connected with money laundering, terrorist financing or other financial crimes and the respective controls and legal framework in place²⁹ . To this end, institutions should take into account at least:

• a. the extent to which the jurisdiction in which the structure will be set up complies effectively with EU and international standards on tax transparency, anti-money laundering and countering the financing of terrorism³⁰ ;
• b. the extent to which the structure serves an obvious economic and lawful purpose;
• c. the extent to which the structure could be used to hide the identity of the ultimate beneficial owner;
• d. the extent to which the customer’s request that leads to the possible setting up of a structure gives rise to concern;
• e. whether the structure might impede appropriate oversight by the institution ’s management body or the institution ’ s ability to manage the related risk; and
• f. whether the structure poses obstacles to effective supervision by competent authorities.

²⁹ For further details on the assessment of country risk and the risk associated with individual products and customers, institutions should refer also to the joint guidelines on ML/TF risk factors (EBA GL JC/2017/37) currently under review.

³⁰ See also:https://eba.europa.eu/regulation-and-policy/anti-money-laundering-and-e-money/rts-on-the-implementation-of-group-wide-aml/cft-policies-in-third-countries

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/