Gibraltar Tightens Bolts on Beneficial Ownership Regulations
Strengthening Anti-Money Laundering Framework
In a move aimed at enhancing its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, Gibraltar has implemented new beneficial ownership rules and regulations.
Key Legislation: Proceeds of Crime Act 2015
The Proceeds of Crime Act 2015 came into effect on January 28th, 2016, requiring all companies, trusts, and other legal entities to maintain accurate and up-to-date records of their ultimate beneficial owners (UBOs).
Key Requirements
- Gibraltar-registered companies must identify and verify the UBOs of any person holding more than a 25% stake in the company or who exercises significant control over its affairs.
- Companies are responsible for maintaining detailed information about their beneficial owners, including personal details and documentation.
Supporting Regulations
To support the implementation of these new requirements, Gibraltar has appointed a Registrar of Ultimate Beneficial Owners. This individual is responsible for:
- Maintaining a central register of all UBO information
- Ensuring companies comply with their obligations under the Proceeds of Crime Act 2015
Additional Guidance and Amendments
Further amendments to the regulations were introduced in 2020, which updated the process for verifying UBO information and provided additional guidance on the application of these new rules. The Register of Ultimate Beneficial Owners (Amendment) Regulations 2018 and 2017 made changes to the reporting requirements for UBOs.
Objectives and Impact
The Government of Gibraltar has stated that the primary objective of these reforms is to enhance transparency and improve the ability of law enforcement agencies to investigate and prosecute money laundering offenses. In practice, this means companies registered in Gibraltar must provide detailed information about their beneficial owners to the Registrar of Ultimate Beneficial Owners.
Benefits and Challenges
The new rules have been welcomed by industry stakeholders, who view them as an essential step in strengthening Gibraltar’s AML/CFT framework. However, some have expressed concerns about the administrative burden placed on companies to implement these changes and ensure compliance with the new regulations.
Conclusion
Ultimately, the implementation of these beneficial ownership rules and regulations is a significant development for Gibraltar, one that underscores its commitment to transparency and anti-money laundering best practices.