Puerto Rico Entities Must Comply with Anti-Money Laundering Laws by Reporting Beneficial Ownership Information

The United States Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a final rule requiring certain entities in Puerto Rico to report beneficial ownership information. This new requirement aims to prevent money laundering and other financial crimes by increasing transparency over the ownership of companies.

Who Must Comply?

The new reporting requirement applies to “Reporting Companies” that are created or registered to do business in Puerto Rico, including:

Corporations
Limited Liability Companies (LLCs)
Other entities

These Reporting Companies must file a report with FinCEN within certain time limits, providing basic information about themselves, their beneficial owners, and company applicants.

What is Beneficial Ownership Information?

Beneficial Owners are individuals who have a significant stake in the Reporting Company, either directly or indirectly, through ownership or control of at least 25% of the company’s interests. Company Applicants are those who create or register the entity, such as:

Attorneys
Corporate formation agents

What Information Must be Reported?

The report requires Reporting Companies to provide detailed information about themselves and their beneficial owners, including:

Names
Addresses
Dates of birth
Identification numbers

Exceptions to the Rule

Exceptions to the rule apply to certain types of entities, such as:

Publicly traded companies
Nonprofits
Large operating companies

However, most entities in Puerto Rico will need to comply with these new regulations.

Seek Guidance from RSM Puerto Rico

At RSM Puerto Rico, our tax advisors can provide guidance on these complex reporting requirements and help you ensure compliance with anti-money laundering laws. Contact us at (787) 751-6164 or email protected for more information.