THE USE OF CONCENTRATION INDICES BY NATIONAL BUSINESS ENTITIES TO IDENTIFY ULTIMATE BENEFICIAL OWNERS
DOI:
https://doi.org/10.32782/inclusive_economics.9-14Keywords:
financial monitoring, ultimate beneficial owner, concentration indices, customer due diligence, national economic entitiesAbstract
Introduction. The economic security of the state cannot be ensured without a financial monitoring system, an important element of which is the identification of the ultimate beneficial owners. Purpose. The article proposes primary financial monitoring entities use concentration indices when identifying actual owners. Methods. The following methods were used: analysis and synthesis, grouping, comparison, generalization. Results. When determining the ultimate beneficial owner, financial monitoring institutions can rely on data found in the ownership structure. The algorithms of concentration indices are presented. Conclusions. For the purposes of primary assessment of information, it is advisable to use a concentration index, calculated for the shareholder with the largest capital stake. When analyzing the complete list of shareholders, it is proposed to use the Herfindahl-Hirschman index.
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