Uzbekistan Introduces Beneficial Ownership Requirements for Company Registration
Boosting Transparency and Combating Financial Crime
In a move to enhance transparency and prevent financial crime, Uzbekistan has made it mandatory for companies to disclose their ultimate beneficial owners (UBOs) as part of the registration process. The new requirement came into effect on March 4, 2021.
What are Ultimate Beneficial Owners?
The definition of an UBO is broad and encompasses any individual who owns or controls a company, regardless of the percentage of ownership. This means that even if an individual holds a small stake in a company, they may still be considered a beneficial owner and required to disclose their details.
Registration Process Requirements
As part of the registration process, companies will need to submit a questionnaire that includes information about their UBOs, such as:
- Full name
- Date of birth
- Nationality
- Residential address
- Identification details
- Tax identification number (if applicable)
- Contact information
Additionally, applicants will be asked whether they or any immediate family members are senior public officials, or if they conduct banking operations on behalf of third parties.
Challenges and Support for Companies
The implementation of this new requirement is expected to be challenging, particularly for companies with complex ownership structures. However, the Uzbek government has promised to make the electronic system for collecting UBO information more user-friendly.
To ensure compliance, businesses should seek advice from experienced lawyers who can help navigate the complexities of UBO disclosure and avoid penalties and reputational damage.
Conclusion
The introduction of beneficial ownership requirements in Uzbekistan is a significant step towards greater transparency and accountability in the country’s business sector. With the expertise and resources of a global law firm, clients can ensure compliance with this new requirement and prepare for the changing regulatory landscape.