Pursuant to the Law on the Prevention of Money
Laundering and Terrorism and Proliferation Financing the Register of
Enterprises of Republic of Latvia (hereinafter - the “UR”) has already made a
number of decisions on the termination of the activity of such companies that
have not provided information on their beneficial owners to the UR.
Companies were required to provide the above
information to the UR by March 1st 2018. The UR has sent reminders
and warnings to companies who had not provided this information via the
Electronic Declaration System and also by mail to the companies' registered
addresses. The activity of companies, which have not responded to the sent reminders,
are terminated by UR’s decision.
Taking into account that this situation has
also been faced by operating companies that simply lack understanding on the
consequences of the UR’s Decision, we have prepared this article to illustrate
three possible scenarios for such companies and the course of the relevant process
following the UR’s decision on termination of company’s activity.
If you have any questions on the process,
please contact Leinonen's Tax and Legal Advisory Department!