The main changes brought about by the amendment of 2022 is concerning the following information which needs to be included on the Register of Beneficial Owners (RBO):
National identification number (NIN) or equivalent (if any) of each beneficial owner and
Tax identification number (TIN) or equivalent (if any) of each beneficial owner
Where a nominee holds interest on behalf of the beneficial owner, the following particulars shall be included in an Annexure to the RBO:
a. For a natural person:
It should only state the name, residential address, service address, date of birth, nationality, national identification number or equivalent (if any) and tax identification number or equivalent (if any) of each nominee holding the interest on behalf of the beneficial owner and the particulars and details of the interest held by the nominee.
b. For a legal person:
It should only state the name, registered address, incorporation or registration number, date of incorporation or registration, the jurisdiction of incorporation or registration, tax identification number or equivalent (if any) and particulars and details of the interest held by the nominee.
All companies/foundations must update their RBO with the required NIN/TIN, supporting documents, and annexures (if necessary) before December 2023.
Therefore, please find below the Template of the RBO and the Annexure to RBO (to be annexed to the RBO if there is a nominee shareholder), which needs to be sent to us before October 2023 for review and comments, including supporting documentation concerning the B.O.s’ NIN/TIN (or equivalent) to ensure correct and accurate information is uploaded to the RBO and B.O. databases before the government deadline.
Other essential amendments concern time-frames for the issuance of documentation and penalties for contraventions:
A. Time-frames:
All companies/foundations shall have their beneficial owner details uploaded to the beneficial owner database within 60 days from the date of incorporation or registration;
Whenever there is an update to the RBO (including Annexure), all companies/foundations shall have the updated information to be uploaded to the beneficial owner database within 14 days of updating the RBO;
The “Declaration of Beneficial Ownership” needs to be submitted to the company/foundation within 21 days of the person becoming a beneficial owner;
If a relevant change occurs about a beneficial owner, the beneficial owner shall give “Written Notice” of the changes to the company/foundation within 21 days of the change;
Upon receipt of the Declaration of Beneficial Ownership under iii or a Written Notice under iv, the company/foundation shall, within 14 days of its receipt:
furnish the resident agent with a copy of the Declaration of Beneficial Ownership or Written Notice; and
cause the RBO to be updated based on the Declaration of Beneficial Ownership or Written Notice.
The resident agent has 14 days from effecting any change to the RBO to have the updated beneficial owner details uploaded to the beneficial owner database.
B. Penalties:
The penalty on the company/foundation for not keeping the RBO or an accurate and updated RBO is now not exceeding SCR150,000 (Approx. US$11,111).
The penalty on the director/councilor for not keeping the RBO or an accurate and updated RBO is now not exceeding SCR150,000 (Approx. US$11,111).
The penalty on a person for not issuing a “Declaration of Beneficial Ownership” upon becoming a beneficial owner is liable on conviction to imprisonment for a term not exceeding one year or a fine not exceeding SCR150,000 (Approx. US$11,111) or to both.
The penalty on the company/foundation for not furnishing the Declaration of Beneficial Ownership to the registered agent within 14 days of its receipt is liable on conviction to imprisonment for a term not exceeding one year or to a fine not exceeding SCR150,000 (Approx. US$11,111) or to both.
The penalty on a person for not furnishing the company/foundation with a Written Notice concerning a relevant change occurring within 21 days is liable on conviction to imprisonment for a term not exceeding one year or to a fine not exceeding SCR150,000 (Approx. US$11,111) or to both.
The penalty on a person who intentionally provides false or misleading information required to be provided is liable on conviction to imprisonment for a term not exceeding one year or to a fine not exceeding SCR150,000 (Approx. US$11,111) or to both.
Should you require additional information or assistance, please contact us at Contact@viss.com.hk.
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