Financial Crime World

Guatemala Set to Enact Beneficial Ownership Requirements

Following US Footsteps in Combating Money Laundering and Corruption

Kamala, Guatemala - The Guatemalan government is poised to implement beneficial ownership requirements for companies operating within the country, as part of its ongoing efforts to combat money laundering and corruption.

A Step Forward in Financial Integrity

Starting January 1, 2024, all existing companies will have one year to file their beneficial ownership information reports. New companies must do so within 90 days of creation or registration. This move follows a similar initiative in the United States, where the Corporate Transparency Act was enacted in 2021.

Centralized Database of Beneficial Ownership Information

The Guatemalan government aims to create a centralized database of beneficial ownership information. This will help eliminate vulnerabilities in the financial system and enable more effective tackling of illicit finance enabled by opaque corporate structures.

“The launch of our beneficial ownership registry marks an important step forward in protecting our economic and national security,” said Minister of Finance of Guatemala.

“Having access to this critical information will allow us to identify and disrupt money laundering and corruption networks, which harm Guatemalan citizens and undermine the country’s economic development.”

Filing Process

The filing process is designed to be simple, secure, and free of charge. Companies required to comply must provide four pieces of information about each beneficial owner:

  • Name
  • Date of birth
  • Address
  • Identifying information from a government-issued document

In addition, the company must submit its own information, such as names and address.

Regional Efforts to Strengthen Financial Integrity

In addition to the US model, other countries have implemented similar measures in recent years. Many more are expected to follow suit in the coming months. Guatemala’s move is seen as a key step forward in the region’s efforts to strengthen financial integrity and combat corruption.