Financial Crime World

Beneficial Ownership Requirements in Gibraltar: A Key Component in Combatting Money Laundering and Terrorist Financing

Introduction

Gibraltar has taken a proactive approach in implementing strict beneficial ownership requirements to combat money laundering and terrorist financing. This article provides an overview of the current regulatory framework governing beneficial ownership in Gibraltar.

The Proceeds of Crime Act 2015: A Milestone in Beneficial Ownership Requirements

In January 2016, the Proceeds of Crime Act 2015 came into force, introducing the concept of Ultimate Beneficial Owners (UBOs) in Gibraltar. The Act requires all Gibraltar-registered companies to maintain a Register of UBOs, which lists their ultimate beneficial owners.

Key Provisions and Requirements

  • Register of Ultimate Beneficial Owners: All Gibraltar-registered companies are required to maintain a Register of UBOs.
  • UBO Information Disclosure: Companies must provide detailed information about their UBOs, including:
    • Names
    • Dates of birth
    • Addresses
    • Nationalities

Amendments and Updates

The Proceeds of Crime Act 2015 has undergone several amendments since its introduction:

  • Proceeds of Crime Act 2015 (Amendment) Regulations 2020: Introduced new requirements for companies to disclose their UBO information on an annual basis.
  • Register of Ultimate Beneficial Owners (Amendment) Regulations 2018: Introduced new penalties for non-compliance with the beneficial ownership requirements.

Penalties for Non-Compliance

Companies that fail to comply with the beneficial ownership requirements may face fines and other penalties, as outlined in the Register of Ultimate Beneficial Owners (Amendment) Regulations 2018.

Conclusion

The beneficial ownership requirements in Gibraltar are designed to ensure transparency and accountability in the corporate sector. By requiring companies to disclose their UBO information, the Government of Gibraltar aims to prevent money laundering and terrorist financing, while promoting good governance and integrity in business operations.