Compliance of CRBO
REQUIREMENTS REGARDING CRBO – NON-COMPLIANCE CAN LEAD TO PROSECUTION!
The requirements in respect of the Central Register of Beneficial Owners (CRBO) have come into effect during the year 2019 through the enforcement of the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 (the Regulations). The Regulations have expanded the scope of the earlier rules regarding the requirement for the companies and body corporates to maintain the Register of Beneficial Owners (RBO). Now, the companies must continue supporting the information in respect of the beneficial owners in an internal register held for this purpose and additionally file specific reports in the Central Register since it was launched on 29 July 2019. This guide helps you to understand who is obliged to file particulars of the beneficial owners with the CRBO, what information is required to be filed and what could be the implications of failing to comply with these requirements.
How to Identify the Beneficial Owners in Your Company?
Knowing what constitutes a person to become a beneficial owner is essential.
A person is a beneficial owner where they hold or control, whether directly or indirectly:
- More than 25% of the voting rights.
- More than 25% of the shares in the company.
- More than 25% of the ownership interest.
- The ability to control the company in other ways.
What is the Timeline for Complying with the Regulations Regarding CRBO?
Under regulations, the entities incorporated before 22 June 2019 were obliged to file the information regarding their beneficial owners with the CRBO on or before 22 November 2019. Accordingly, entities included after 22 June 2019 should file their report within five months of incorporation.
Where any changes occur about the particulars of the beneficial owners, the same should be notified to the CRBO within 14 days of such change.
Who is Required to File on the CRBO?
All companies incorporated in Ireland must obtain, maintain, and file the information concerning their beneficial owners into their internal register and file these details on the Central Register.
Inspection of CRBO Made Mandatory in Due Diligence Process
The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (the Act) has enforced the requirement for all the designated persons, including banks, financial institutions and other service providers, to check the RBO as an essential step in their process of due diligence before taking on new customers and thereby reporting any discrepancies or non-compliances to the CRBO. This has the consequent effect of increased compliance and therefore increased number of submissions to the CRBO.
Implications of Failure to Comply
Since 2019, staying on top of the Register of Beneficial Owners’ requirements has become critical to avoid the risk of being prosecuted and convicted with a Class A fine or up to €500,000.
How Can We Help?
With the strict enforcement actions implemented by the CRBO, it is crucial to be aware of your responsibilities and avoid fines/convictions. Our team is equipped to do just that for you enabling you to stay compliant and free of penalties.