All companies registered in Latvia are obliged
to submit information on their beneficial owners to the Register of Enterprises
of the Republic of Latvia (the Register of Enterprises) until March 1, 2018.
The obligation follows the recent amendments to
the Law on the Prevention of Money Laundering and Terrorism Financing. The
amendments impose an obligation to all companies to register their beneficial
owners and record the related changes in the Register of Enterprises.
The beneficial owner is a natural person who holds or
controls at least 25% of the legal entity's shares or voting shares in a direct
or indirect ownership. The beneficial owner is also the person who controls a legal
entity or establishes business relations on behalf of or in the interests of the
real beneficiary, as well as carries out occasional transaction.
Registration of beneficial
owners
In order to register a beneficial owner, a
special application form must be submitted to the Register of Enterprises indicating
the way the beneficial owner controls the company, including information on how
the intermediary persons involved ensure the control. As well, information including
personal data of the beneficiaries must be provided.
In event of deliberately false reporting to the
Register of Enterprises, a person may be held liable as per the procedures
specified in the Criminal Law.
As of April 1, 2018, the information on the
beneficial owners will be available online to each person upon payment of the
state fee.
In case you have any question on registration
of the beneficial owners or you need assistance related to the above obligations,
please contact Managing lawyer of Leinonen Latvia.
10.01.18
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