70. Investment firms should avoid setting up complex and potentially non-transparent structures. …

Investment firms should avoid setting up complex and potentially non-transparent structures. Investment firms 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 place²³ . To this end, investment firms should take into account, as a minimum:

• 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 terrorism²⁴ ;
• 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 investment firm ’s management body or the investment firm ’ s ability to manage the related risk; and
• f. whether the structure poses obstacles to effective supervision by competent authorities.

²³ For further details on the assessment of country risk and the risk associated with individual products and customers, investment firms should also refer to the joint guidelines on ML/TF risk factors (EBA GL JC/2017/37) currently under review.

²⁴ See also Commission Delegated Regulation (EU) 2019/758 of 31 January 2019 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council with regard to regulatory technical standards for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries: 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/