Financial Crime World

Costa Rica Extends Deadline for Beneficial Owner Transparency Filing Amid Stricter Compliance Measures

The Central Bank of Costa Rica has extended the deadline for companies to file their annual beneficial owner transparency forms, known as RTBF, until July 31, 2024. This move comes amidst a shift towards stricter compliance measures aimed at preventing illicit activities such as money laundering, fraud, and tax evasion.

Wider Filing Obligation

The revised regulations published in official Gazette No. 50, Executive Decree 44390-H, now apply to a wider range of entities, including:

  • Private trusts
  • Third-party asset managers
  • Non-profit organizations
  • State public companies

Clarification on Information Providers

According to the new regulations, individuals responsible for providing information are those designated by law to act on behalf of obligated subjects. This includes:

  • Legal representatives of companies
  • Trustees of trusts
  • Legal representatives of non-profit organizations

Changes in Representation

The Special Power of Attorney previously allowed for representation in filing is no longer recognized. Instead, a General Power of Attorney must be granted to someone in Costa Rica to represent foreign entities, which requires registration with the National Registry.

Consequences of Non-Compliance

Failure to comply with the filing obligations may result in:

  • Formal notification from the Tax Department, with a three-day period to rectify the situation
  • Legal notification through various means, including publication in the official newspaper La Gaceta

Compliance Requirements

To comply with the filing requirement, companies must use the online electronic platform of the Central Bank. To create an account, you will need:

  • A local identification card or DIMEX residency card

Without these documents, companies may need to grant a General Power of Attorney to someone in Costa Rica to represent them and complete the filing.

Alignment with International Standards

The move towards stricter compliance measures aligns with international standards set by organizations like the Financial Action Task Force (FATF), aimed at ensuring transparency and preventing illicit activities. As such, it is essential for companies operating in Costa Rica to ensure timely compliance with the new regulations to avoid potential penalties and consequences.

By following these guidelines, companies can maintain compliance with the revised regulations and avoid any potential issues or penalties.