Chile Introduces Beneficial Ownership Reporting Requirements
The Chilean government has introduced new regulations requiring the registration of beneficial owners of legal entities, investment funds, and other entities with no legal personality. The move aims to increase transparency and prevent money laundering in the country.
National Register of Beneficial Ownership
As part of the measures, a national Register of Beneficial Ownership will be maintained by the Chilean Internal Revenue Service (SII). The register will contain information on beneficial owners, including:
- Personal details: name, date of birth, tax ID or identification card
- Nationality and residency: nationality, domicile, country of residence
- Background of the entity they are beneficial owners of
The information will be kept by the SII for a period of at least 10 years.
Who is Considered a Beneficial Owner?
Beneficial owners are defined as individuals who directly or indirectly own more than 10% of the stock, contribution, or have voting or veto rights in the relevant entities. They may also be those who elect or have elected the majority of directors or managers, or exercise effective control over such entities.
Parties Required to Report Beneficial Ownership Information
The parties required to report beneficial ownership information include:
- Legal entities themselves: investment funds and other entities with no legal personality
- Beneficial owners themselves: individuals who are required by the SII
Reporting Requirements
The information must be submitted on an annual basis through a sworn statement, which is due in March of each year. Any changes in beneficial ownership or control must be reported within 60 days.
Penalties for Non-Compliance
The regulation establishes penalties for non-compliance, ranging from approximately US$60 to US$29,000 per individual not informed, plus fines for repetition. In addition, false or substantially incomplete information may result in a penal sanction of minimum to medium term imprisonment.
Access to the Register
State agencies will have full access to the register and can use it to carry out their functions. The public will only have access to the name and identity card or identification number of beneficial owners who receive subsidies from the State or contract with the State.