A Deep Dive into the Importance of Beneficial Ownership Registration- Companies Act 2019 (Act 992)
As Ghana continues to grow its economy and tackle corruption, money laundering, and terrorism financing, the need for beneficial ownership registration is becoming increasingly critical. Beneficial ownership registration refers to the identification and recording of individuals or entities that ultimately own or control a company, partnership, or trust. This information is essential for a variety of stakeholders, including financial institutions, tax authorities, law enforcement agencies, and civil society organizations.
Tackling Corruption through Beneficial Ownership
Beneficial ownership information can help expose corrupt practices within companies and partnerships. By allowing regulators to trace the ultimate owners of companies, it becomes easier to uncover instances of bribery, fraud, and other forms of corruption.
Combating Money Laundering
One of the key benefits of beneficial ownership registration is the ability to prevent money laundering. Regulators can trace the origin of funds and detect any suspicious financial transactions, which is crucial in detecting and preventing the flow of illicit funds into the country’s financial system.
Strengthening Transparency
In Ghana, there has been a growing demand for greater transparency in the business sector. Beneficial ownership registration provides stakeholders with the information they need to make informed decisions and hold companies accountable for their actions. This increased transparency reduces the risk of bribery and corruption, promoting public trust in the business sector.
Improving Tax Collection
The government of Ghana is working to improve tax collection, which is crucial in funding public services and infrastructure projects. Beneficial ownership registration can assist tax authorities in ensuring that companies are paying their fair share of taxes, and identifying instances of tax evasion and avoidance.
Additional Benefits
In addition to reducing corruption and money laundering, and improving tax collection, beneficial ownership provides several other benefits to stakeholders of a company. Which are:
Transparency
The collection and dissemination of beneficial ownership information increases transparency in the corporate sector, reducing the risk of corruption, fraud, and money laundering.
Better Decision Making
Stakeholders, including investors, lenders, and regulators, can make more informed decisions about whether to invest in or do business with a company, with access to accurate and up-to-date beneficial ownership information.
Improved Governance
The collection of beneficial ownership information promotes better governance within companies, allowing stakeholders to hold company directors and owners accountable for their actions.
Facilitation of Due Diligence
Companies can conduct due diligence on potential business partners and investors more easily, reducing the risk of corruption and fraud.
Protection of Property Rights
Beneficial ownership information helps to protect the rights of property owners and ensure that assets are not transferred to individuals or entities who may have obtained them illegally.
In conclusion, beneficial ownership registration is a powerful tool for promoting transparency, reducing corruption and money laundering, and improving tax collection in Ghana. It provides stakeholders with the information they need to make informed decisions, promote better governance, and protect property rights.
