Finland Enhances Transparency with Beneficial Ownership Registry
As part of its efforts to prevent money laundering and terrorism financing, Finland has implemented a system requiring companies to disclose their beneficial owners. This new regulation aims to increase transparency and accountability in the business world.
Who is Affected by the New Regulations?
The new regulations apply to:
- Limited liability companies
- Co-operatives
- Some general partnerships
- Limited partnerships
However, private traders are exempt from filing a notification.
How to Disclose Beneficial Owners
The process of disclosing beneficial owners is free of charge and can be completed online through the Trade Register’s website. The information will then be made available to authorities and other organizations for use in preventing money laundering.
Key Features of the Registry
- Accessibility: The registry is accessible through the Trade Register’s website, where users can search for information on companies and organizations.
- Virre Information Service: Authorities have made available a Virre Information Service that allows users to check if a notification of beneficial owners has been registered for a company or organization.
Consequences of Non-Compliance
Failure to comply with the regulations may result in difficulties for companies to operate, and in extreme cases, could lead to liquidation or removal from the register.
Benefits of the Registry
The registry is designed to provide transparency and accountability, making it easier for authorities to identify and track down individuals involved in illicit activities. The system also enables banks, accounting firms, and law firms to conduct due diligence on their customers and report any deficiencies or inconsistencies in beneficial owner details to the relevant authorities.
Penalties for Non-Compliance
As of 2024, companies that fail to submit accurate and up-to-date information about their beneficial owners may face penalties, including liquidation or removal from the register.
Regulatory Framework
The regulations are based on the Finnish Act on Money Laundering and the underlying EU directives on money laundering. The ultimate goal is to prevent money laundering and terrorist financing, reveal and detect such activities, and track down and recover criminal benefits.
For more information on the Finnish Act on Money Laundering and related legislation, visit the Finlex reference database or the moneylaundering.fi website.