Ability to conceal corruption: Concealed ownership structures

Concealed ownership structures make corruption more difficult to prevent and identify, and the proceeds of corruption more difficult to trace. 

The two most common forms of concealed ownership are in relation to companies and properties.  Many countries do not have registers which state the owner of a company or property.  Even if they do, the registers may not be accessible by the public, or they may not require the actual ultimate beneficial owner to be listed, and may allow nominee names to be used. 

In consequence people can own companies in a conflict of interest position, or can conceal corruptly obtained assets from investigators. 

For example:

• A procurement manager of an organisation may have a secret ownership interest in a supplier to the organisation.  The manager may then corruptly use her/his position as procurement manager to ensure that the supplier is awarded contracts by the organisation.
• A public official who has received bribe payments in return for contract awards may use the proceeds of the bribe to buy a property, but register the property in the name of a friend or a company.
• Corrupt public officials or managers may register the company through which they are obtaining or concealing corrupt proceeds in another country (e.g. a tax haven) which does not allow public searching of the ownership register.