The EU and its allies have rallied to support Ukraine, but without a robust system of transparent company and beneficial ownership data, detecting hidden Russian wealth is difficult, given that many family members and networks of shell companies are used to conceal their assets.
Maira Martini of Transparency International said that the Russian invasion of Ukraine must serve as a wake-up call to Member States, because it is an important part of the importance of transparent beneficial ownership. It is time for EU countries to speed-track key improvements to the Union's beneficial ownership framework. Information on the real owners of companies should be available for free, without restrictions, in open data format. It will allow civil society, journalists, and law enforcement to track assets of Russian kleptocrats and hold them to account. Helen Darbishire, Executive Director of Access Info, underscored the role of civil society and investigative journalists in using this data, saying that journalists and anti-corruption activists have proved their ability to track illicit wealth and expose hidden assets. Their efforts are severely hampered by the lack of access to complete company and beneficial ownership data. We are concerned that the EU has promised openness but is not delivering on it in practice. Chris Taggart of Opencorporates expressed concern over the delays at the EU level in the implementation of the 2019 Open Data Directive, which promised to make company registers and company ownership available to all as open data. This would give a more transparent and trusted business environment and provide a hostile environment for those who used opacity to hide dirty money. Nearly 3 years later, it still hasn't been implemented, and governments are playing catchup to track the money behind the Putin regime. The EU needs to act now to deliver on its promises and identify the regime's money before it leaves Europe in some overseas haven. Jesse Renema of Open State Foundation argues that with the Pandora, Open Lux and Panama Papers, the civil society has shown what it can do in exposing corruption, tax evasion and money laundering with limited beneficial ownership transparency. With such a proven track record and such large-scale abuse of trust, shell companies and other shady constructions, the public should have full access to company and beneficial ownership data. The EU needs to act now, because this is not the case. The EU shows that strength is in solidarity. It is time that the EU opens up company ownership registers, allowing civil society and investigative journalists to aid in the detection of corruption and uncovering of illicit assets.