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Regulatory Obligations

The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 (the “2019 Regulations”) came into effect on the 22nd March 2019 and apply to all Funds and Management Companies (“ManCos”).

You can download a pdf version of our Beneficial Ownership Register Services – ICAVs and Unit Trusts and our Services brochure here

There is no change to the definition of “beneficial owner” as set out previously:

  • Any natural person who ultimately owns or controls (either directly or indirectly) a corporate entity through ownership of over 25% of the shares or voting rights, or through control via other means.
  • Where there is no natural person identified as a beneficial owner as defined above, the persons holding the positions of “senior managing officials” shall be identified as the beneficial owners. Senior managing officials include Fund/ManCo directors.
2019 Regulations – New Requirements Operation of Central Register
  •  The establishment of a Central Register on which all Funds/ManCos must file their Beneficial Ownership information.
  • In addition to the existing required information for each beneficial owner the 2019 Regulations introduce a new requirement to obtain the PPS number where one has been issued. Guidance is expected on what measures, if any, will be taken for beneficial owners who do not hold a PPS number. The PPS number will not be available for inspection.
  •  The 2019 Regulations provide for the establishment of the Central Register.
  • Funds/ManCos will have until 22nd November 2019 to file their beneficial ownership information.
  • It is unclear at this stage where ICAVs should file their information.
  • Funds/ManCos incorporated after the establishment of the Central Register will have 5 months from the date of incorporation to make their first filing.
  • There is an obligation on all Funds/ManCos to keep beneficial ownership information in the Central Register accurate/current and all changes must be filed within 14 days.
 Access to Central Register  Offences
  •  The following will have unrestricted access (except for PPS numbers):
    • The Irish Police
    • Financial Intelligence Unit Ireland
    • The Revenue Commissioners
    • The Criminal Assets Bureau
    • Other State Competent Authorities
  • Members of the public will have restricted access and it is expected that there will be a nominal fee charged.
  •  A Fund/ManCo who fails to comply with the 2019 Regulations may be liable to a Class A fine or, on indictment, a fine not exceeding €500,000.
  • A custodial sentence of a term not exceeding 12 months may also be imposed.

 

KBA offers the provision of suitably qualified professionals dedicated exclusively to anti-money laundering/counter terrorist financing (“AML/CFT”) compliance to ensure Funds/ManCos are in compliance with the 2019 Regulations both in respect of the initial filing and the ongoing monitoring and filing of changes.

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