The Mandatory BE-12 Survey: Balancing Financial Transparency and Privacy in the Global Era

By 15th September 2023 News from our members No Comments

By Silvestri International

In recent years, the United States government has intensified its efforts to identify and prevent illicit or evasive financial activities, protect the integrity of the U.S. financial system, and ensure greater transparency in the market.

One of the primary tools used to pursue these objectives is the Mandatory BE-12 Survey, a survey that has become mandatory for foreign beneficiaries of legally established entities in the United States. Its main purpose is to gather detailed information regarding the revenues, expenses, investments, and other financial activities of the involved entities.

To comply with the requirements of the Mandatory BE-12 Survey, foreign-owned entities will need to provide accurate and complete financial data every five years. This process may entail a commitment of time and resources, but it is crucial to avoid sanctions and legal consequences.

However, this initiative, though inspired by good intentions, raises a series of questions and concerns about the directions that government policies could take in the future.

Some experts argue that the government could further expand its surveillance of foreign beneficiaries and introduce stricter policies and requirements, which could discourage long-term investments in the United States. Others, instead, believe that greater financial transparency can promote fairer competition, prevent fraudulent behaviors, and increase investor confidence, making the American market more efficient and attractive.

In conclusion, the Mandatory BE-12 Survey is not merely a regulatory obligation but a crucial starting point for a broader discussion revolving around fundamental themes such as financial transparency, privacy, international cooperation, and the promotion of investments. Managing the financial challenges of the 21st century will require a constant process of reflection and adaptation of policies to ensure economic well-being and financial security, both nationally and internationally.

Silvestri International

Avv. Bartolomeo Pizzoli