NAURU INTRODUCES REGULATIONS TO BOOST TRANSPARENCY IN SHAREHOLDERS’ INFORMATION
Enhancing Transparency and Combating Financial Crimes
The Government of Nauru has introduced regulations requiring corporations, partnerships, and trusts to disclose beneficial ownership information. This move aims to enhance transparency and combat financial crimes such as money laundering and terrorist financing.
Requirements for Entities Operating in Nauru
All legal entities operating in Nauru are required to file a Declaration of Beneficial Ownership Information Form with the Authority. The form requires the entity to provide detailed information about its beneficial owners, including:
- Names
- Permanent addresses
- Email contacts
- Phone numbers (if available)
Access by Foreign Competent Authorities
Foreign competent authorities will also have access to this information, enabling them to track and monitor transactions more effectively. The Authority is required to obtain any missing information in Nauru to provide it to the requesting authority.
Submission Requirements
Each beneficial owner must complete the Declaration of Beneficial Ownership Information Form and submit it to the Authority within a specified timeframe. The form includes questions that require the beneficial owner to disclose their relationship with the entity, including:
- Class of shares
- Voting rights
- Decision-making powers
Monitoring Compliance and Penalties
The Authority has been tasked with monitoring compliance with the new regulations. Entities that fail to submit the required information or provide false or misleading information will face penalties.
Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Framework
The introduction of these regulations is a significant step forward in Nauru’s efforts to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. This demonstrates the country’s commitment to transparency and international cooperation.