The Department of the Registrar of Companies and Intellectual Property (TEEDI) has announced the imposition of financial charges in regard to the Register of Beneficial Owners.
As detailed in their announcement on 17 May 2024, once a director is appointed into a company or a partner is appointed into a partnership, they must ensure that the beneficial owners of the company or partnership are properly declared in the Register of Beneficial Owners before accepting their positions. Failure to do so will result in financial charges being imposed on the new directors or partners from the date they submit the beneficial ownership information.
Essentially, it is the duty of new directors or partners to conduct due diligence to confirm that the company’s beneficial owners are properly declared in the Register of Beneficial Owners. If this is not done prior to their appointment, they will be held financially accountable for any penalties incurred.
This follows the announcement of the Department of the Registrar of Companies dated the 14 March 2024, in which all companies incorporated or registered under the Companies Law, Cap. 113, all European Public Limited Liability Companies (SEs) and all Cooperatives or their officers/partners, to enter the system of the Register of Beneficial Owners. It was emphasised in the announcement that from the 1 April 2024, pecuniary charges and other sanctions come into effect, in accordance with the provisions of the Prevention and Suppression of Money Laundering Activities Law and Directive KDP112/2021.
These changes, along with expected subsequent announcements, emphasise the critical importance of compliance and the necessity for companies and partnerships to stay abreast of evolving regulatory requirements.
For more information, feel free to contact any member of our AML & Compliance team.