A new report from the Organization for Economic Co-operation and Development calls for transparency and disclosure to limit the use of corporate vehicles for money laundering, tax evasion, market fraud and other illicit activities.

The OECD presented the report to the G-7 Finance ministers last week. The “Report on the Misuse of Corporate Vehicles for Illicit Purposes” concludes that the types of corporate vehicles misused most frequently are those that provide the greatest degree of anonymity to their beneficial owners.

The report calls on governments and other relevant authorities to ensure they are able to obtain information on the beneficial ownership and control of corporate vehicles, so as to combat their misuse for illicit purposes.

The report recommends that governments and other relevant authorities: require up-front disclosure of beneficial ownership and control information to the authorities upon the formation of the corporate vehicle; oblige intermediaries involved in the formation and management of corporate vehicles, such as company formation agents, trust companies, lawyers, trustees, and other professionals to maintain such information; and, launch investigations to obtain beneficial ownership and control information when illicit activity is suspected.