Financial Crime World

Here’s the article formatted in markdown:

Understanding Beneficial Ownership in Malta

The Malta Business Registry (MBR) guidelines outline various scenarios and cases related to determining beneficial ownership. This article provides an overview of these guidelines, highlighting key concepts and requirements.

Direct and Indirect Control

Beneficial ownership is determined when a natural person owns or controls more than 25% of shares, voting rights, or ownership interest in a company. This includes:

  • Direct control: When a natural person directly holds more than 25% of shares or ownership interest.
  • Indirect control: When a natural person exercises control through other means, such as holding shares indirectly.

Control by Other Means

In cases where no natural person is identified as the beneficial owner, another person(s) may exercise ultimate control over the company through other means, such as:

  • Usufruct (a right to use and enjoy a property)
  • Pledge (a type of security interest in a property)
  • Guarantee (a promise to assume liability for a debt)

Beneficial Owners in Cell Companies

When determining beneficial ownership in cell companies, all shareholders must be considered, including those holding shares only in cells.

Senior Managing Official

A senior managing official is a director, CEO, CFO, or similar official who exercises significant control over the company’s daily affairs. This individual may also be considered a beneficial owner.

Trusts and Licensed Companies

Companies owned by trusts and licensed by Maltese competent authorities are still required to disclose beneficial ownership information.

Common Questions and Answers

  • Can a parent company be entered as the beneficial owner of a subsidiary?
    • No, only natural persons can be entered.
  • How do you determine beneficial owners if no shareholders hold more than 25% of shares?
    • Consider other criteria, such as control through voting rights or ownership interest, or through control via other means.

By understanding these guidelines and requirements, companies in Malta can ensure they are compliant with the rules related to beneficial ownership.