APPLICATION OF POWER INDICES BY NATIONAL ECONOMIC ENTITIES FOR ULTIMATE BENEFICIAL OWNER IDENTIFICATION
Abstract
The research explores the possibility of using power indices by primary financial monitoring entities to identify the ultimate beneficial owners of their clients. It outlines the algorithm for calculating the Shapley-Shubik index, the Banzhaf index, and the Deegan-Packel index. It was determined that the Shapley-Shubik index and the Deegan-Packel index are advisable for use when applying enhanced due diligence measures to a client and when a reporting entity calculates its own risk profile. If clients are assigned a low or medium risk level, it is recommended to apply the Banzhaf index, which identifies the degree of a shareholder's power regardless of the order in which the company owner joins a winning coalition. Another advantage of using the Banzhaf index is its indifference to the number of shareholders capable of making a management decision.
References
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Kaczmarek J., Rothe J. Control by Adding Players to Change or Maintain the Shapley–Shubik or the Penrose–Banzhaf Power Index in Weighted Voting Games Is Complete for NPPP. Frontiers in Artificial Intelligence and Applications. 2024. № 392. C. 3525-3532. DOI: https://doi.org/10.3233/faia240906 (дата звернення: 28.07.2025)
Alon N., Edelman P. H. The inverse Banzhaf problem. Social Choice and Welfare. 2010. № 34 (3). С. 371–377. DOI: https://doi.org/10.1007/s00355-009-0402-8 (дата звернення: 28.07.2025)
Przybyła-Kasperek M., Smyczek F. Comparison of Shapley-Shubik and Banzhaf-Coleman power indices applied to aggregation of predictions obtained based on dispersed data by k-nearest neighbors classifiers. Procedia Computer Science. 2022. № 207. C. 2134–2143. DOI: https://doi.org/10.1016/j.procs.2022.09.273 (дата звернення: 28.07.2025)
Deegan Jr, J., & Packel, E. W. A new index of power for simple n-person games. International Journal of Game Theory. 1978. № 7 (2). C. 113–123. DOI: https://doi.org/10.1007/BF01753239 (дата звернення: 28.07.2025)
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