On August 10, 2017, the Government of the Russian Federation has published the Resolution, which fixed the procedure for providing information on beneficial owners of legal entities.
The authority to collect this information is now assigned to the Federal Tax Service and the Federal Financial Monitoring Service (and their territorial bodies).
Thus, at the request of authorized bodies, legal entities are required to provide information about their beneficial owners electronically or on paper within five working days from the date of receipt of the relevant request.
We remind that from December 21, 2016, legal entities in accordance with Article 6.1. of the Law "On Combating Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism" has additional responsibilities to disclose information about its beneficial owners.
In this case, legal entities are obliged:
- update information about its beneficial owners (regularly, but at least once a year);
- document the information received;
- store information about its beneficial owners for at least 5 years from the date of receipt of such information;
- to keep information on the measures taken to establish the necessary information with respect to its beneficial owners for at least 5 years from the date of receipt of such information;
- provide available documented information about its beneficial owners upon the request of the authorized body.
For violation of the obligation to disclose information on beneficial owners including, including for failure to provide information at the request of the authorized body, the following liability is provided (Article 14.25.1 of the Code of Administrative Offenses):
- for officials in the amount of 30,000 to 40,000 rubles;
- for legal entities in the amount of 100 000 to 500 000 rubles.
What does this mean for your business?
In view of the terms set by the Government for responding to the requests of authorized bodies, it is recommended to identify in advance the beneficial owners, obtain and systematize information on your company's beneficial structure, store and regularly update this information.
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