As of 1st of July 2020 the scope of subjects who are obliged to report their ultimate beneficial owners (hereinafter – the UBO) under the Latvian Law on the Prevention of Money Laundering, Terrorism and Proliferation Financing will be extended.
The obligation to report UBO will also apply to the following
foreign subjects:
1.
Branches of
foreign companies that have been (or will be) registered in register kept by
the Register of Enterprises of Republic of Latvia (hereinafter – the Register
of Enterprises);
2.
Representations
of foreign companies that have been (or will be) registered in the register
kept by the Register of Enterprises;
3.
Permanent
establishments of foreign companies that have been (or will be) registered in
the taxpayers’ register kept by the State Revenue Service of Republic of Latvia
(hereinafter – the State Revenue Service).
Accordingly, those mentioned foreign subjects, which at the date of 1st
of July 2020 have already been registered in the registers kept by the Register
of Enterprises or the State Revenue Service will be obliged to report their
UBO. These foreign subjects must report their UBO until 1st of
January 2021. In case a foreign subject will fail to report their UBO until 1st
of January 2021, then the subject will be excluded from the particular
register, in which it has been registered, with a decision of the Register of
Enterprises or the State Revenue Service.
Additionally, also those foreign companies that after the 1st
of July 2020 will wish to register a branch or a representation in the
registers kept by the Register of Enterprises, or to register a permanent
establishment in the taxpayers’ register kept by the State Revenue Service,
will be obliged to report their UBO.
Branches and representations of foreign companies, that have been or
will be registered in the registers kept by the Register of Enterprises will
have to report their UBO to the Register of Enterprises. However, permanent
establishments of foreign companies that have been or will be registered in the
taxpayers’ register kept by the State Revenue Service will have to report their
UBO to the State Revenue Service.
Leinonen recommends the mentioned foreign subjects to report their UBO
in a timely manner to allow your business in Latvia to run and develop without
interruptions. Leinonen legal team will be glad to assist you with preparation
of the documents, which are necessary for the reporting of the UBO to the
Register of Enterprises or the State Revenue Service. We encourage you to
contact Leinonen Latvia legal team regarding the obligation to report your UBO
as well as regarding other questions related to the upcoming legislative
changes.
08.06.20
