Bermuda Introduces Beneficial Ownership Requirements
Increased Transparency and Compliance with International Standards
In a bid to increase transparency and comply with international standards, Bermuda has implemented new legislation requiring companies to obtain and maintain information about their beneficial owners.
New Legislation: The Beneficial Ownership (Companies) Regulations 2017
The regulations came into effect on March 23, 2018, and apply to all Bermuda companies except those that are exempted. The purpose of the legislation is to make beneficial ownership information accessible to law enforcement agencies upon request.
Key Provisions
- Companies must establish and maintain a beneficial ownership register, which must be kept at the company’s registered office or another location in Bermuda convenient for inspection by the Registrar of Companies.
- The register is not publicly accessible and may only be accessed by the Registrar of Companies or on their behalf.
- To comply with the new regulations, companies must take reasonable steps to identify any individual who is a beneficial owner of the company and all relevant legal entities in relation to the company.
Definition of Beneficial Owner
The definition of a beneficial owner includes individuals who own or control more than 25% of the shares, voting rights, or interests in the company through direct or indirect ownership. Additionally, an individual is considered a beneficial owner if they have control over the company by other means or hold a senior management position.
Consequences of Non-Compliance
Significant penalties apply for non-compliance with the beneficial ownership legislation, including fines ranging from $5,000 to $50,000 for knowingly providing false information. Sanctions may also include restrictions on voting rights and other interests.
Seeking Assistance
Conyers Dill & Pearman offers a full range of services to assist clients with their obligations under the legislation. For further information, please contact Graham Collis or Anthony Whaley at media@conyersdill.com or your usual Conyers Dill & Pearman contact.
This article is not intended to be a substitute for legal advice or a legal opinion. It deals in broad terms only and is intended to provide a brief overview and general information.