Financial Crime World

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Saint Lucia Introduces Beneficial Ownership Requirements for International Business Companies

The government of Saint Lucia has introduced new regulations requiring international business companies (IBCs) to maintain a register of beneficial owners and shareholders. This move aims to increase transparency and combat money laundering and terrorist financing.

New Requirements for IBCs

Under the new rules, IBCs must keep two registers:

  • Beneficial Ownership Register: This register includes the name and address of each beneficial owner, the date they became or changed their status as a beneficial owner, and the percentage of shares with voting rights held by the beneficial owner.
  • Share Register: This register contains information about shareholders, including their names and addresses, the number of shares held, and the date they were entered into the register. The share register can also include information about persons who are no longer shareholders.

Compliance Requirements

IBC’s must keep these registers in any form approved by the directors, but if it is in electronic format, the company must be able to produce evidence of its contents. Registered agents must submit a declaration to the Registrar stating that they have received the annual shareholder return and information on beneficial ownership.

Consequences of Non-Compliance

International business companies that fail to comply with these new regulations may face penalties, including:

  • Fines
  • Being struck off the register

Exemptions

The new regulations do not apply to:

  • Public companies
  • Multilateral institutions
  • Government entities
  • Pension funds regulated by the government
  • Companies licensed and regulated by the Financial Services Regulatory Authority

Global Effort towards Transparency

Saint Lucia’s move to introduce beneficial ownership requirements is part of a global effort to increase transparency and combat financial crime. The regulations are expected to improve the reputation of Saint Lucia as a reputable jurisdiction for international business and investment.

This move demonstrates the government’s commitment to promoting transparency, accountability, and stability in the financial sector, making it an attractive destination for investors and businesses alike.