As a part of the implementation of the forth Money Laundering Directive many countries have adopted legislation for keeping track of the beneficial owners of legal entities. The directive requires every EU member state to implement a central register containing details of company beneficial owners.
The central register will include collection of the following info:
1. If a legal entity has a beneficial owner
2. Information regarding who is the beneficial owner of a company
3. The extent of ownership control
Please note, that Limited companies with voting shares admitted to trading on a regulated market within the EES are not required to report the beneficial owner. However, all subsidiaries of the listed parent company must keep track of and file information regarding the beneficial owner.
As we interpret the regulations, which is shared by Companies House in the jurisdictions we have discussed this matter with, information regarding the beneficial owner should contain the whole ownership chain from the beneficial owner down to each subsidiary in the group. This means that each subsidiary has to file information on the whole ownership chain up to the beneficial owner.
Any group that own companies (fully or partly owned) with a beneficial owner must have full control of the ownership structure and changes to the structure over time (historical data) in order to be compliant.
Therefore, you should consider the following when assessing your filing requirements:
- Do the companies of your group have a beneficial owner?
- If yes, have you gathered all the information regarding the beneficial owner(s); and do you have a process to keep this information up to date?
- Do you have full control of the legal ownership structure of the group and a process for keeping track of current changes to this structure (including at least 5 years of historical data)?
- Have you registered your companies in the “Beneficial Owner Register” in your country and do you have a process to secure that all group companies have and will complete their reporting requirements?
By utilizing the Palantir Tax & Legal Platform you will be in full control of your ownership structure and will be able to implement a secure and firm process for keeping track of any changes in your legal ownership structure. You can gather information concerning beneficial owners that is needed in order to be in compliance with the Money laundering Directive and to be able to have data and information easily accessible for registration of beneficial owners or required changes to such a registration. By utilizing the platform you can keep track of the legal ownership chain from each subsidiary up to the ultimate parent and have this ownership chain visualized both in text and in graphical charts. In addition, the platform provide you with tools for effective monitoring of the compliance status regarding beneficial ownership reporting.
Please contact us to learn more of how we can help you to comply with the beneficial ownership reporting.