Financial Crime World

Uganda’s Beneficial Ownership Determination Deadline Looms: Companies Face Fines for Non-Compliance

Kampala, Uganda - The Uganda Registration Services Bureau (URSB) has issued a 30-day ultimatum to companies and partnerships in Uganda to submit their beneficial owners’ information, or face penalties.

Background

The notice follows the enactment of The Companies (Amendment) Act 2022 and The Partnership (Amendment) Act 2022, which mandate the registration of beneficial owners. These regulations require every company and limited liability partnership registered in Uganda to keep a register of its beneficial owners, disclosing personal information, nature of ownership or control, and date of cessation.

Consequences of Non-Compliance

Failure to comply with the deadline will attract a daily default fine of UGX 500,000 (approximately US$136) for the company and each officer who defaults. This is a serious concern for companies that may not be aware of these new regulations or may have underestimated the importance of beneficial ownership registration.

Definition of Beneficial Owner

The definition of a beneficial owner in Uganda’s new legislation encompasses natural persons with final ownership or control, as well as those who conduct transactions on behalf of a company or partnership. Companies must ensure that they identify and register all relevant beneficial owners to avoid penalties.

Deadline for Submission

Companies have until February 11, 2023 to file their beneficial owners’ information with URSB. It is essential for companies to take immediate action to comply with this requirement to avoid fines and penalties.

Seeking Guidance and Support

For further guidance and support regarding this requirement, companies are advised to contact Ernst & Young (Uganda) in Kampala or its global offices in Paris, London, and New York.

Key Takeaways

  • Companies must register their beneficial owners with URSB by February 11, 2023.
  • Failure to comply will attract daily default fines of UGX 500,000 (approximately US$136).
  • The definition of a beneficial owner includes natural persons with final ownership or control and those who conduct transactions on behalf of a company or partnership.

By taking immediate action to comply with this requirement, companies can avoid penalties and ensure continued operation in Uganda.