Financial Crime World

Saint Lucia Introduces Beneficial Ownership Requirements for International Business Companies

Enhancing Transparency and Regulatory Compliance

In a move aimed at enhancing transparency and regulatory compliance, Saint Lucia has introduced new beneficial ownership requirements for International Business Companies (IBCs) operating in the country. The changes, which came into effect on July 1, 2021, require IBCs to file annual returns and unaudited financial statements with their registered agent.

Key Changes

  • All IBCs are now deemed resident and subject to the provisions of the Income Tax Act, requiring them to file annual tax returns.
  • Provisions relating to stamp duties, withholding tax, and income tax have been amended, with payment of these taxes applying to most companies.
  • IBCs must maintain registers of shareholders, directors, and beneficial owners at their registered office, and provide a list of companies in default of any filing requirements to their registered agent.

Compliance Requirements

  • Failure to comply with these requirements may result in penalties.
  • Registered agents are responsible for ensuring that IBCs meet all relevant filing obligations.

Impact on Business Confidentiality

Despite the changes aimed at improving transparency and anti-money laundering regulations, some experts have expressed concerns over the potential impact on business confidentiality and the burden placed on registered agents.

Statement from the Financial Services Authority (FSA)

“The FSA is committed to ensuring that International Business Companies operating in Saint Lucia are fully compliant with all relevant regulations and laws.”

Licensing Requirements

As part of the changes, IBCs will also be subject to the Aliens (Licensing) Act, which governs the licensing of non-citizens doing business in the country. However, these companies will not be restricted from doing business with residents or owning immovable property.

Conclusion

With the new regulations now in place, IBCs operating in Saint Lucia are advised to review their compliance requirements and ensure that they meet all relevant filing obligations. Failure to do so may result in penalties and potential revocation of registration.