The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2016 (SI 560/2016) came into effect in November 2016. The purpose is to give effect to the first paragraph of Article 30 of the MLD4 which requires legal entities incorporated in Ireland to obtain and hold adequate, accurate and current information in respect of their ‘beneficial owners’.
Ireland has adopted a two-step process to implementing the directive. The 2016 Regulations make provision for the first step which requires entities to hold a Beneficial Ownership Register (which we have written about previously). The second step in Ireland refers to the establishment of a Central Register and the imposition of a requirement on relevant entities to make returns to a registrar (CRO) - this has not yet been implemented.
The primary obligations of the Regulations rests with the relevant entities.
1. Under MLD4,
2. Beneficial owner must ultimately own or control the entity.
3. Shareholding or ownership interest of 25% + 1 in an entity by a natural person is an indication of direct ownership of that entity by that natural person (indirect ownership via corporate ownership – by natural person).
4. In certain circumstances where no natural person meets the test, then the entity’s senior managing officials may be taken to be its beneficial owners.
Other Points to Note:
Contact Ray Masterson to find out more about the Register of Beneficial Owners or about our tax and accounting services.
A video message from Tadgh O'Sullivan, Director.
To request a call back from the OSK team, please complete the form below.