Financial Crime World

China Issues New Rules on Filing of Beneficial Ownership Information

New Regulations Take Effect on November 1, 2024

The People’s Bank of China (PBOC) and the State Administration for Market Regulation (SAMR) have jointly issued new rules requiring companies and other entities to file beneficial ownership information. The Administrative Measures for Beneficial Ownership Information took effect on November 1, 2024.

What is Beneficial Ownership?

Beneficial owners are natural persons who ultimately own or exercise actual control over a filing entity, or who enjoy the ultimate benefits of a filing entity. This includes individuals who:

  • Directly or indirectly own 25% or more of the equity, shares, or partnership interests of the entity
  • Hold 25% or more of the profit rights or voting rights

Exemptions

Small entities with registered capital not exceeding 10 million Chinese yuan (approximately US$1.39 million) and whose shareholders or partners are all natural persons are exempt from filing beneficial ownership information, provided the entity commits that there is no other natural person exercising actual control over it, receiving benefits from it, or controlling or obtaining income from it through means other than equity or partnership interests.

Filing Requirements

The PBOC has established a registration system for entities to file their beneficial ownership information. The required information includes:

  • Name
  • Gender
  • Nationality
  • Date of birth
  • Address of habitual residence or employer’s address
  • Contact information
  • Identity document information
  • Type of beneficial ownership

Access and Confidentiality

State authorities, financial institutions, and specified non-financial institutions can obtain an entity’s beneficial ownership information from the PBOC if needed to perform their official duties. These entities are required to maintain confidentiality of all such information.

Goals and Objectives

The measures aim to:

  • Enhance market transparency
  • Maintain market and financial order
  • Curb money laundering and terrorist financing activities