Financial Crime World

Brunei Darussalum’s Financial Compliance Procedures Under Scrutiny

Corporate Governance Framework

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Brunei Darussalam’s financial regulatory landscape is governed by the Companies Act 2016 and the Code of Corporate Governance. The country’s corporate governance framework requires companies to maintain a high level of transparency and accountability in their financial dealings.

Directors’ Responsibilities Take Center Stage

  • Under Brunei’s corporate law, directors are held personally responsible for discharging their duties as required by the Companies Act 2016.
  • This includes ensuring that the company files its annual returns within 28 days after the Annual General Meeting (AGM).
  • Directors who fail to comply with this requirement may face prosecution.

A Company’s Obligations Under the Law

  • Companies in Brunei Darussalam are required to hold an AGM at least once every calendar year, with a maximum interval of 15 months between meetings.
  • The company’s first AGM must be held within 18 months after incorporation.
  • Additionally, companies must appoint an auditor and have their accounts audited.

Dormant Companies Still Required to File Annual Returns

  • While a dormant company may not have any accounting transactions, it is still required to file its annual returns with the Registry of Companies within 28 days after the AGM.
  • Furthermore, a dormant company must hold an AGM at least once every calendar year.

Financial Compliance is Key to Avoiding Prosecution

  • In Brunei Darussalam, ignorance of the law is no excuse for non-compliance.
  • Directors who consent to act as directors must discharge their duties as required by the Companies Act 2016.
  • Failure to do so may result in prosecution, even if the director is unaware of the law.

Conclusion

Companies and directors in Brunei Darussalam must adhere to strict financial compliance procedures to avoid penalties and ensure transparency in their financial dealings. The country’s regulatory framework provides a clear outline of responsibilities and obligations for companies and directors, emphasizing the importance of maintaining high standards of corporate governance.