Peru Implements Beneficial Ownership Rules: What You Need to Know
Introduction
In an effort to combat money laundering and terrorist financing, the Peruvian government has introduced beneficial ownership rules that require companies operating in the country to report their ultimate beneficial owners (UBOs). The regulations are set to take effect on October 16, with a deadline for submission by October 24.
Who is Affected
- All legal entities registered in the Peruvian Tax Registry as of September 30, 2024
- Investment funds, mutual funds, trust funds, consortiums, and other similar entities
Required Information
- Names of natural persons who ultimately own or control the company
- Addresses of natural persons who ultimately own or control the company
- Tax identification numbers of natural persons who ultimately own or control the company
Consequences of Non-Compliance
- Failure to submit the UBO report or filing it in an incomplete manner or including false information will result in a fine of 0.6% of the company’s net revenues
- Minimum penalty: PEN 25,750 (approximately USD 6,850) for companies with a revenue below five tax units
- Maximum penalty: PEN 257,500 (approximately USD 68,250) for companies with a revenue above 50 tax units
Additional Penalties
- In cases where the company fails to file the UBO report, it will be presumed that the legal representatives of the company are guilty of fraud, gross negligence or abuse of authority
- Legal representatives may face penalties even if the company is not responsible for the non-compliance
Maintenance of Records
- Companies should maintain up-to-date information on their beneficial owners to avoid any potential issues
Conclusion
To ensure compliance with these new regulations, companies operating in Peru should take steps to identify their beneficial owners and submit the required report. If you need assistance in determining your beneficial owners, submitting the declaration, or maintaining accurate records, do not hesitate to contact us for support.