Meghana Sri Lakshmi, LL.M., Damodaram Sanjivayya National Law University
ABSTRACT
In the global fight against financial crimes, including money laundering, tax evasion, and corruption, identifying and controlling Significant Beneficial Owners (SBOs) has become essential. This study examines the legal framework, regulatory requirements, and judicial interpretations surrounding SBOs, emphasizing India’s similarities with global norms. It also looks at current affairs, highlighting essential lessons learned from the Leixir and LinkedIn orders, the importance of SBOs for Private Investment Vehicles (PIVs), and the difficulties in implementing SBO legislation. Lastly, it offers suggestions on how to improve these policies going forward.
1. Introduction
The need for transparency in determining the actual beneficiaries of corporate organizations has increased due to the globalization of financial markets and the complexity of corporate structures. Individuals who eventually own or control a firm directly or indirectly are known as Significant Beneficial Owners or SBOs. For regulatory bodies to maintain openness, accountability, and the integrity of the financial markets, SBO identification is crucial. The stability and integrity of the financial system can be jeopardized by the absence of transparency in beneficial ownership, which can encourage illegal actions, including tax evasion, money laundering, and corruption. In order to successfully address these challenges, governments and international organizations have realized how important it is to implement strict legislation that identifies and discloses beneficial ownership. Identifying SBOs contributes to preventing financial crimes and improves public confidence in corporate governance by holding those with substantial power over corporations responsible.
This study focuses on India and pertinently compares foreign norms. It attempts to offer a thorough examination of the legislative provisions, regulatory requirements, and judicial interpretations pertaining to SBOs.
Yorumlar