Compliance Department Report | New regime to identify Beneficial Owners
Dear Sir or Madam,
By means of FIU Resolution No. 112/2021 (the “Resolution”), effective as of October 21st, 2021, the Financial Information Unit (“FIU”) established certain requirements that all Reporting Entities must comply with when identifying Beneficial Owners. Among others, the Resolution establishes:
• A new definition of Beneficial Owners that applies to all Reporting Entities:
“The natural person (s) who own at least 10% of the capital or voting rights of a legal person, a trust, an investment fund, any other legal structure; and/or the natural person who by other means exercises control”.
• Identifying Beneficial Owners regardless of Clients risk profile.
Clients – regardless of their risk profile- must provide Reporting Entities an affidavit with the following information: name and surname, ID number, address, nationality, profession, marital status, percentage of participation and/or ownership and/or control, and CUIT / CUIL / CDI if applicable.
If the Reporting Entity is faced with the impossibility of identifying Beneficial Owners, the natural person in charge of the management, administration, or representation of the legal person, trust, investment fund, or legal structure must be identified.
The FIU may verify and supervise the reasons that led to the non-identification of Beneficial Owners.
• Identifying the Reporting Entities Beneficial Owners.
When registering with the FIU, Reporting Entities must identify their beneficial owners.
Likewise, the Resolution establishes that the FIU may verify the information provided by Reporting Entities and their Clients. False, incomplete, or erroneous data are considered a serious infraction and sanctioned under the regime of Law No. 25,246.
Do not hesitate to contact us should you require any further information on this matter.
Maximiliano N. D’Auro