The European Commission considers public access to beneficial ownership information as a key measure in preventing money laundering, terrorist finance, and the misuse of corporate entities. In its decision from November 22nd, 2022, the European Court of Justice (ECJ) declared the unconditional public access of beneficial ownership information granted under the 5th Anti-Money Laundering Directive as invalid (joined cases C-37/20 and C-601/20). Harald Amberger and Paul Brezina review existing evidence on the economic effects of beneficial ownership transparency and discuss potential implications of the ECJ’s decision. The empirical evidence so far suggests that, in order to be effective, such transparency requires public access to beneficial ownership information and associated public scrutiny. Thus, the ECJ’s decision could be a blow for the European Commission and its goals.
