Beneficial Ownership Regulations in Nauru

This article outlines the key regulations related to beneficial ownership in Nauru, providing a comprehensive breakdown of the requirements and responsibilities for legal entities, nominated officers, and beneficial owners.

Regulation 1: Requirements for Legal Entities

Maintaining a Register of Beneficial Owners

• A legal entity must maintain a Register of Beneficial Owners.
• The Register must contain details of current beneficial owners and be kept up-to-date.
• The nominated officer is responsible for maintaining the Register.

Regulation 2: Nominated Officer’s Responsibilities

Key Responsibilities of the Nominated Officer

• Keep and maintain records of beneficial ownership.
• Provide information to the Authority within 7 days of receiving it from a legal entity.
• Continue to register variations with the Authority within 7 days.

Detailed Responsibilities

• The nominated officer must:
  • Keep accurate and up-to-date records of beneficial ownership.
  • Notify the Authority of any changes or updates within 7 days.
  • Ensure that all necessary information is provided in a timely manner.

Regulation 3: Beneficial Owner’s Obligations

Declaration of Beneficial Ownership

• A person who becomes a beneficial owner must submit a declaration of beneficial ownership to the legal entity within 7 days.
• Existing beneficial owners must update their declarations if their interest changes or varies.

Responsibilities of Beneficial Owners

• Beneficial owners are responsible for:
  • Notifying the legal entity of any changes in their beneficial ownership status.
  • Ensuring that their declaration is accurate and up-to-date.

Regulation 4: Records of Beneficial Ownership Kept by Nominated Officer

Responsibility for Record Keeping

• The nominated officer is responsible for keeping and maintaining records of beneficial ownership.
• If the nominated officer leaves or resigns, they must ensure that the records are transferred to a replacement.
• If a legal entity winds up or dissolves, the nominated officer must keep records for 7 years.

Retention of Records

• The nominated officer must retain records for:
  • 7 years after winding up, dissolution, or cessation.
  • The Authority may also require retention of records for 7 years after winding up, dissolution, or cessation.

Regulation 5: Period for Record Keeping When Legal Entity Not Existing

Retention of Records in Absence of a Legal Entity

• Records of beneficial ownership must be kept by:
  • The nominated officer for 7 years after winding up, dissolution, or cessation.
  • The Authority for 7 years after winding up, dissolution, or cessation.

Regulation 6: Quality of Assistance

Monitoring the Quality of Assistance

• The Authority must monitor the quality of assistance it receives from foreign competent authorities in response to requests for basic and beneficial ownership information.
• The Authority must also ensure that its own systems and processes are effective and efficient in providing this information.

Schedule: Declaration of Beneficial Ownership

Template for a Declaration of Beneficial Ownership

This schedule provides a template for a declaration of beneficial ownership, which includes:

• Details of the beneficial owner (e.g., name, address).
• Particulars of the beneficial owner’s interest in the legal entity (e.g., class of shares, power to appoint Board Members).

The declaration also requires the beneficial owner to specify how they exercise control or ownership over the legal entity.