Well let's try to explain it this way:
The mechanisms for obtaining beneficial ownership and control information fall into three broad categories: up front disclosure to the authorities; requiring corproate service providers to obtain, verify, and retain records on the beneficial ownership and control of the corproate vehicles; and primary relicance on investigative measures when illicit activity is suspected. As stated above, provided thatt there is full adherence to the Fundamental Objectives, each jurisdiction may tailor and/or combine these options to fit it's local conditions, legal system, and practices. The basic characteristics of these options are summarised below:
1. An up front disclosure system requires the disclosure of the beneficial ownership and control of corporate vehicles to the authorities at the establishment or incorproation stage and imposes an obligation to update such information on a timely basis when changes occur. The obligation to report beneficial ownership and control information to the authorities may be placed on the corporate vehicle, the ultimate beneficial owner, or the corproate service provider involved in the establishment or management of the corproate vehicle. Jurisdicions may enhance the transparency of an up front disclosure system by choosing to make the beneficial ownership and control information collected available to the public at large.
2 Imposting an obligation on corporate service providers to maintain beneficial ownership information (The Intermediary Option)! The Intermediary Option requires intermediaries involved in the establishment and management of corproate vehicles, such as company formation agents, trust companies, registered agents, lawyers, notaries, trustees, and companies supplying nominee shareholders, directors, and officers )corproate service providers) to obtain, verify, and retain records on the beneficial ownership and control of the corproate vehicles that they establish, administer, or for which they provide fiduciary services. This has been for long time the case in the Seychelles but has changed by now.
3 Primary Reliance on an Investigative Mechanism. Under an investigative system, the authorities seek to obtain (through compulsory powers, court-issued subpoenas, and other measures) beneficial ownership and control information when illicit activity is suspected, when such information is required by authorities to fulfil their regulatory/supervisory functions, or when such information is requested by other authorities domesticallyy and internationally for regulatory/supervisory or law enforcement purposes.
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