Key US and EU rules differ, raising risks

Significance The United States began collecting beneficial ownership (BO) information this January, having passed the Corporate Transparency Act (CTA) in 2020 as part of the Anti-Money Laundering Act. However, transatlantic symmetry in this area remains elusive. Impacts The lack of connectedness and transparency across BORs and data vendor restrictions will raise compliance costs. Interoperability problems will also impact the efficacy of detecting financial crime in multi-jurisdictional corporate structures. Interoperability problems will similarly impact the detection of sanctions violations and evasion.