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BIOT Introduces Stricter Beneficial Ownership Rules

In a move aimed at increasing transparency and combating financial crime, the British Indian Ocean Territory (BIOT) has announced new beneficial ownership rules and regulations. According to sources close to the matter, the revised ordinances and regulations are designed to bring BIOT’s laws in line with international standards.

Key Changes to Beneficial Ownership Rules

The new rules require companies operating within BIOT to maintain accurate records of their beneficial owners, individuals who ultimately own or control more than 25% of a company’s shares. This information will be publicly available, allowing regulatory authorities and law enforcement agencies to identify potential money laundering and terrorist financing risks.

Chapter E: Verification and Update Requirements

A key component of the revised regulations is Chapter E, which sets out specific requirements for companies to verify and update their beneficial ownership information on an ongoing basis. Companies that fail to comply with these regulations risk facing fines and other penalties.

Key Aspects of Chapter E

• Companies must verify and update their beneficial ownership information regularly.
• Failure to comply with these regulations will result in fines and other penalties.

Importance of Transparency

In a statement announcing the new rules, Acting Commissioner Nishi Rajendra Dholakia emphasized the importance of transparency in preventing financial crime. “By requiring companies to disclose their beneficial owners, we can better identify and disrupt illicit activities that threaten the integrity of our financial system,” she said.

Implementation Timeline

The revised ordinances and regulations will be published on the BIOT Administration website for general distribution, effective 26 March 2024. Companies operating within BIOT must comply with these new rules by 1 September 2020.