Privacy, ownership and disclosure

Ask who can see what

The word privacy can refer to several different things: information visible to the public, information held by professional counterparties and information disclosed under legal duties. A clear explanation identifies the audience and the type of information before describing any protection.

For a particular arrangement, draw a record of the people and organisations involved. Distinguish the corporate documents, ownership records, banking file and any trust-related documents. Their treatment must be assessed under the applicable rules and agreements.

Confidentiality and due diligence coexist

FINMA’s anti-money-laundering guidance explains that financial intermediaries must identify the contracting partner and the beneficial owner of assets. Unusual or higher-risk relationships can require additional clarification, and reporting duties can arise.

An account of confidentiality should therefore explain the relevant identification and disclosure obligations. It should avoid implying that a corporate structure removes the need for those enquiries.

Source reading: FINMA ↗

Make the information requirements explicit

This file helps distinguish a legitimate expectation of careful handling from an unsupported assurance of secrecy. It also makes practical administration easier: required information can be supplied to the right party through appropriate channels.

• Which documents establish ownership and control?
• Which counterparties need information for onboarding and ongoing monitoring?
• What contractual confidentiality commitments apply?
• Which legal disclosure and reporting duties need specific advice?
• Who maintains the records, and how are material changes communicated?

State the limits of an explanation

The answer changes with the entity, activity, counterparties, jurisdictions and facts. A general article cannot determine the position of every shareholder, settlor, trustee or beneficiary.

The purpose of this reference is to help readers ask precise questions. The conclusions for a live structure require advice on the applicable documents and current law.