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21.06.2019

Broader powers given to the Enterprise Register for the registration of beneficial owners

An article addressing broader powers given to the Enterprise Register for the registration of beneficial owners written by Zane Eglīte-Fogele, Partner of PRIMUS DERLING, and Alise Veide, Lawyer of PRIMUS DERLING, was published on 17 June 2019 in the issue of iTiesības.

According to amendments made to the Anti-money Laundering and Counter-terrorism Financing Law, subjects of the law (for example, attorneys-at-law, external accountants, credit institutions, etc.) must report to the Enterprise Register (ER) any instances when their investigation reveals that information provided about a client’s beneficial owner does not correspond to that of the ER. Meanwhile, the ER must send information required for examination to law enforcement authorities.

Having been informed about such discrepancies, the ER registers a warning that information about the beneficial owner may be false. The warning will remain in force until the reporting person revokes it or the relevant law enforcement authority notifies the ER that there are no grounds for considering the information concerned false.

Should an undertaking fail to submit a special application for registration of its beneficial owner by 1 July 2019, while information about the beneficial owner has already been submitted to fulfil other statutory duties and the type of control depends only on the shareholder’s status, the ER may register the beneficial owner based on legislation without making any special decision.

The amendments provide that an insolvency administrator holding a position in the senior management body of a legal person or legal arrangement is regarded as a beneficial owner of that person or arrangement but only in so far as the insolvency administrator acts in its official capacity in the relevant management body. Consequently, the beneficial owner status of an insolvency administrator is not related to its beneficial owner status as a private individual.

 

Full article in latvian available here.