Register of beneficiaries: definition, submitted data

The Register of Beneficiaries is a database that contains information about the actual owners of different types of assets. The availability of such a register enables all countries to combat money laundering and the financing of prohibited organizations. The register allows identifying more effectively those who do not fully pay taxes.

The beneficiary is the person receiving the benefits in monetary or other terms. This person is considered key in the contractual relationship. For example, the beneficiary is a person who owns securities at the moment of repayment, receives payments at the moment of the insured event, has income from property, etc.

The need for registers

Transparency requirements for corporations require countries to establish beneficiary registries. In addition, each country assesses the best way to combat " non-transparent " company activity, taking into account political and legal rules.

The establishment of registries is required to do the following:

• Identify the actual owner of the entity;
• Identify the person who avoids paying taxes;
• Identify money laundering in a timely manner;
• Detect illegal money movements.

The concept of beneficiary means the recipient of the benefit. The criteria for determining the beneficial owner were adopted in 2015. A person who has the status of nominal director, intermediary, or agent may not be a beneficiary.

Forms of information bases

Registries in different states may have different degrees of openness. In some states, the databases are public, and information can be obtained through the official online page. A number of countries have a closed registry, which is accessible only to some authorities.

The degree of disclosure varies according to the data protection laws that are relevant in a particular country. The database is public in jurisdictions such as Norway, Estonia, Poland, etc.

What data are entered in the register

The register should usually include firms, branches, foundations, and other persons operating in a particular country. Individuals with equity stakes in companies must also submit all data that are requested.

It is possible to provide information through agents. If the conditions of sending the data are violated, a fine will be required. Some state and municipal companies as well as financial organizations are not required to submit information.

Information about the legal entity - the name of the company, address, number, etc. - must be submitted to the register. In addition, information about owners and managers must be provided. Passport data, information on citizenship, nationality, and assets are to be submitted as well.

Depending on the country, where the company is opened, information on the structure of the company and extracts from financial organizations may be required. If you have any questions regarding company registration and filing data with the registry, please contact our experts at IT-OFFSHORE.