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Gibraltar register of ultimate beneficial owners
01/09/2017

New Gibraltar UBO regulations

On the 26 June this year new regulations came into effect that requires the disclosure of the identity of the ultimate beneficial owners of Gibraltar registered companies and other entities, including trusts. In common with other European jurisdictions the legislation has been introduced in compliance with international anti-money laundering obligations and best practice, in particular, the Fourth EU Anti-Money Laundering Directive.

Under the Register of Ultimate Beneficial Owners Regulations 2017 a corporate or legal entity incorporated in Gibraltar must obtain and hold adequate, accurate and current information on the beneficial ownership of the entity, including details of the beneficial interest held. The requirement also extends to express trusts.

The Regulations require information must be collected of each beneficial owner’s full name, date and place of birth, residential address as well as other personal information. Details must also be provided of when the beneficial interest was acquired, and when it ended, how the interest is held and the percentage of the holding.

The requirement for express trusts requires the same information to be provided by the settlor, the trustees and protector, if any, and the beneficiaries or class of beneficiaries, as well as any other natural person exercising effective control over the trust.

Details of the beneficial owner must be collected by the company or other entity to be provided to the Registrar of Ultimate Beneficial Owners by 30 September 2017.

There is a continuing duty to maintain current information and to notify all changes to the beneficial ownership and the details of beneficial owners to the Registrar.

Access to the information held on the Register may be made to the Registrar by authorities that are involved in anti-money laundering activities and obliged entities, as well as persons and organisation that can demonstrate a legitimate interest in having access to the information.

A beneficial owner may make application to the Registrar to request that their personal details are withheld from disclosure. The applicant must establish that exceptional circumstances exist and that the information should not be disclosed to a person or entity with a legitimate interest. Exceptional circumstances would include the exposure of the beneficial owner to the risk of fraud, kidnap, violence or if the beneficial owner is a minor or otherwise incapable.

Compliance with the Regulations will be enforced by the imposition of restrictions on the beneficial interest including its transfer or disposal.  The Regulations also give powers to the courts to order the sale of the interest. Failure to provide information or the provision of false information is a criminal offence punishable by fine and imprisonment.

For further details in this respect please get in touch with your Rosemont International contact