The role of identifying the ultimate beneficiary in combating financial crimes.

Document Type : Original Article

Author

a faculty member at the Saad Al-Abdullah Academy for Security Sciences and a visiting assistant professor at Case Western University in the United States, teaching the program on financial integrity and money laundering.

10.21608/mjle.2025.457731

Abstract

This study addresses the critical importance of identifying the beneficial owner as a core tool in combating financial crimes, particularly money laundering, terrorist financing, fraud, and tax evasion. The term “beneficial owner” refers to the natural person who ultimately owns, controls, or benefits from a legal entity, even if not officially recorded. Complex corporate structures and trusts are often exploited to conceal these individuals, posing significant challenges for regulatory authorities. The study reviews legal and technological frameworks used for identifying beneficial ownership, highlighting the need for harmonized international legislation and cross-border cooperation. It emphasizes the role of advanced technologies such as artificial intelligence and blockchain in analyzing ownership data and enhancing financial transparency. Moreover, the study underlines the pivotal role of financial institutions, which must apply due diligence standards and report suspicious activities, placing them at the forefront of efforts to uncover hidden ownership layers. It also discusses regulatory and technical challenges hindering effective identification, stressing the need for coordinated international action. In conclusion, the study offers practical recommendations to strengthen transparency and accountability, making beneficial ownership identification a cornerstone in protecting the global financial system and fighting organized crime.

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