What is the beneficiary registry: what is important to know
The beneficiary is the owner and beneficiary. In some context, this definition may be construed as the founder of the company. In order to determine what is meant by the register of beneficiaries, it should be clarified what is meant by the registry - a synonym for this word is a database, a register.
What is the register of beneficiaries
This concept refers to a database containing information about the final owner of the company, or an individual, or about a complex corporation up to the individual who is located as a result of the chain. This database is created by entering personal information into the form when registering the organization.
When planning the creation of a company, many businessmen take into account how open the register with information about the ultimate beneficiaries of the institution will be. Thanks to new technologies, it is possible to retrieve data from any country remotely, if it is freely available. In this regard, if confidentiality of information is an important parameter for the founder, it is necessary to clarify whether the data on the final beneficiary will be in the open or closed registry.
The concept of public and private registries
The synonym for the public registry is open. It implies that information about the owners of the organization will be available to a large number of persons. Such information may be located on the pages of government agencies on the network that organizations register. It is possible to find the required information by entering the name of the institution or its registration code.
The closed registry does not disclose data to a large circle of persons, only to a limited number. So, fiscal authorities, law enforcement service will be able to get the necessary data. This registry is not uploaded to the public and the data cannot be viewed by anyone.
The main purpose of creating registers and periodically entering information in them is to combat the development of terrorist organizations, to prevent money laundering, and to search for people who evade paying taxes. By 2020, the registry will be introduced in all jurisdictions of the European Union.
Features of using the registry
Many states have a public register of company founders. There are some advantages to creating benefit recipient lists.
The main advantages:
• The ability to verify data on prospective partners, customers;
• The ability to identify fraud and other irregularities by the beneficiary;
• The greatest likelihood of unlawful acts being disclosed by law enforcement agencies.
There is a certain procedure for registering data in the database. For this, the surname, name and patronymic of the owner of the organization, date of birth, information on residency, place of residence of the beneficiary, share of ownership are entered.
If you have questions about the use of registries, as well as nuances when entering data in them, contact our specialists at IT-OFFSHORE, we will advise and help you find a solution to the problem.