Financial Crime World

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Peru Strengthens Beneficial Ownership Transparency with New Requirements

As part of its efforts to combat financial crime and promote transparency, the Peruvian government has established new requirements for beneficial ownership reporting for legal entities registered in the country. According to recent regulations, companies must submit a report on their ultimate beneficial owners (UBOs) by October 24th.

Who Must Report?

The reporting requirement applies to all legal entities registered in the Peruvian Tax Registry (RUC) as of September 30th, 2024. This includes:

  • Investment funds
  • Mutual funds for investment in securities
  • Trust funds domiciled in Peru
  • Trusts or trust funds incorporated or established abroad with an administrator or protector domiciled in Peru
  • Consortiums among others

Due Date and Requirements

The deadline for submitting the UBO report is between October 16th to 24th. Companies must provide accurate and complete information on their UBOs, including:

  • Names
  • Addresses
  • Dates of birth
  • Nationalities

Consequences of Non-Compliance

Failure to submit the UBO report or filing it in an incomplete manner, or including false information can result in a fine equivalent to 0.6% of the company’s Net Revenues. The minimum fine is PEN 25,750 (approximately USD 6,850) and the maximum is PEN 257,500 (approximately USD 68,250). Additionally:

  • It will be presumed that the legal representatives of companies that fail to file the UBO report are guilty of fraud, gross negligence or abuse of authority
  • They will be jointly and severally liable for the company’s tax debts

Importance of Due Diligence

Companies must also comply with UBO due diligence requirements. Failure to do so will not result in a fine, but companies must ensure that they have adequate processes in place to identify and report on their UBOs.

Seek Professional Advice

To navigate these new requirements, companies are advised to consult with professionals who can assist in determining beneficial owners, submitting the declaration, and ensuring that information is kept up-to-date.