ALGERIA INTRODUCES BENEFICIAL OWNERSHIP TRACKING REGIME FOR LEGAL ENTITIES
Compliance Deadline Approaching: November 30, 2024
Algerian legal entities have a limited window to comply with new reporting obligations introduced by Executive Decree No. 23-429, effective as of November 30, 2023.
Who is Affected?
All Algerian legal entities registered in the Trade Register must declare their beneficial owners in the National Trade Register Center’s (CNRC) public register of beneficial owners. This includes:
- Entities set up prior to the publication date of the decree
- Entities with multiple beneficial owners
What is a Beneficial Owner?
A beneficial owner is defined as a natural person who:
- Owns or controls the entity
- Carries out transactions on its behalf
- Exercises effective control over it
Compliance Requirements
To meet the compliance requirements, affected entities must:
- File electronically: File their beneficial owner declarations through the CNRC’s online platform within one month of establishment or registration.
- Maintain a dedicated register: Keep all information in a dedicated register and update it if there are any changes to the entity or its beneficial owners.
- Retain supporting documents: Even if an entity is deregistered from the Trade Register, its representatives or shareholders must retain this information and supporting documents for five years.
Government Aim
The Algerian government aims to increase transparency and compliance with legal requirements through this new regime.
Consequences of Non-Compliance
Entities that fail to comply may face consequences, although these are not specified in the decree.
For more information on this alert, please contact Ernst & Young Advisory Algérie’s Halim Zaidi or visit the Tax News Update: Global Edition for a full listing of contacts and email addresses.