Asia is rapidly transforming into a powerhouse of global trade and innovation. With its burgeoning middle class and accelerated economic growth, the region offers immense opportunities for businesses worldwide.
China remains a dominant force, with its Belt and Road Initiative driving deeper global connectivity. Countries like Indonesia, India and the Philippines are also poised for tremendous economic expansion.
However, global organisations seeking growth in Asia often face significant data accessibility challenges, particularly in their ultimate beneficial ownership (UBO) compliance processes.
Video summary: Overcoming UBO data challenges in Asia
Joanna Wands, our Head of UK and Europe, breaks down the main obstacles to accessing UBO data in Asia and offers actionable strategies to tackle these challenges. Watch the video for a quick summary of how businesses can address regulatory, language and data accessibility issues effectively.
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A closer look at ultimate beneficial ownership data compliance roadblocks in Asian markets
- Access to data:
Many Asian registries require local residency or specific credentials to access data. - Unstructured data:
A significant portion of company information across Asia is stored in PDFs or other unstructured formats, making it difficult to extract and verify details. This mirrors challenges seen in Europe but is amplified by the region’s linguistic diversity. - Language and translation issues:
Most registries maintain data in native languages, and English is often not a second or third language. This creates a significant hurdle for companies trying to interpret critical information. - Regulatory divergences:
Asia lacks uniformity in mandatory disclosure requirements, with countries like Singapore and China excelling in data transparency while others lag behind. Understanding these differences is vital for businesses operating across multiple jurisdictions. - Ownership structures and UBO registers:
Many Asian countries have yet to establish accessible ultimate beneficial ownership (UBO) registers. Even where such information exists, cross-border shareholder structures often necessitate navigating multiple registries.
Encouraging trends in Asia’s UBO data compliance landscape
Despite these challenges, there are promising developments that signal a more transparent and business-friendly future for Asia:
- Anti-corruption campaigns:
Countries like China and Vietnam are implementing robust measures to tackle corruption, while Singapore emphasises asset recovery to curb financial crime.
- Alignment with international standards:
Nations such as the Philippines and Vietnam are working to meet Financial Action Task Force (FATF) requirements, signalling a commitment to global best practices
- Digitalisation efforts:
Registries across Indonesia, Malaysia and the Philippines are increasingly adopting digital systems, making company information more accessible. Initiatives like Singapore’s COSMIC project highlight the potential for collaboration among financial institutions to combat financial crime - Enforcement actions:
Regulatory bodies are taking a stronger stance on compliance violations. Recent fines for non-compliance in Singapore and China reinforce the region’s commitment to upholding transparency and accountability.
Looking ahead
Asia’s trajectory towards greater digitalisation and regulatory alignment bodes well for businesses seeking to capitalise on the region’s economic growth. While challenges remain, the direction of travel is clear: Asia is becoming a more accessible and compliant market, with governments and institutions recognising the value of international cooperation and transparency.
For businesses, the key lies in leveraging technology and expertise to navigate the complexities of the region. Whether it’s automating data extraction from unstructured formats or employing multilingual teams for registry searches, adopting innovative strategies will be essential for success in this dynamic market.
As Asia continues to rise as a global economic leader, its challenges are matched only by its potential. With the right tools and insights, businesses can position themselves to thrive in this exciting region.
Find out more about AsiaVerify’s UBO verification solutions.
