Companies urged to be aware of new beneficial ownership rules

Companies registered in the Isle of Man will soon be required to adhere to new rules concerning beneficial ownership.

The Beneficial Ownership (Amendment) Bill 2020 recently received Royal Assent after passing through the branches of Tynwald, and will come into force on 1 September 2021.

The changes have been made in response to the Island’s Mutual Evaluation Report 2016, conducted by MONEYVAL, and will further improve the accuracy of the database which records beneficial ownership – defined as the natural person or people who ultimately own or control a company, limited partnership with legal personality or foundation.

Treasury Minister Alfred Cannan MHK said: ‘The introduction of these changes send a clear message that the Isle of Man is a responsible and responsive jurisdiction committed to following international financial standards.

‘Establishing the beneficial ownership database in 2017 placed us on a firm footing following the 2016 MONEYVAL report, and underlined a commitment to the UK Government to improve agreements for the sharing of information on beneficial ownership.’

He added: ‘I urge all registered businesses, legal entities and their nominated officers to be aware of their obligations and make any changes which may be necessary before the amended legislation comes into force in less than three months’ time.’

A beneficial owner is someone who owns or controls more than 25 per cent of a legal entity. Details must be submitted online, via Isle of Man Government Online Services, to the Isle of Man Database of Beneficial Ownership by a nominated officer or corporate service provider.

The Companies Registry issues enrolment codes by post to nominated officers and corporate service providers, which enables them to link a particular company to their Online Services account.

Comprehensive information, including downloadable forms and instructional videos, are available on the IoM Government website: https://www.gov.im/categories/business-and-industries/companies-registry/beneficial-ownership/

For further assistance, please email companies@gov.im

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