WHAT SHOULD YOU KNOW ABOUT THE FINAL BENEFICIARY OWNER?

 The question of the ultimate beneficial owner is very relevant today. Every entrepreneur must understand: "Who is the beneficial owner, what information is provided about him and when is it submitted?" Ignorance of the above can lead to violations of applicable law and prosecution of individuals.

 The current legislation is the Law of Ukraine "On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction", which entered into force in April this year. This normative act updated the definition of the ultimate beneficial owner, and increased the control over informing about such.

The importance of this issue is due to the following:

• it is necessary to register information about the ultimate beneficial owner, as well as the ownership structure of the legal entity;
• all enterprises, except for state and communal ones, must submit information about their ultimate beneficial owners;
• if you do not submit or do not submit the necessary information about the final beneficial owners in time, you may be prosecuted and fined in the range of UAH 17,000 to 51,000.

Who is the ultimate beneficial owner?

 The ultimate beneficial owner of a legal entity is a natural person who has the opportunity to exercise decisive influence on the activities of legal entities persons.

Under the decisive influence it is necessary to understand the following:

• first, it is a direct influence, ie when the person owns a share in the authorized capital of 25% or more;
• second, indirect but decisive influence. This situation applies to those cases where a person owns a share in the authorized capital of jur. Individuals of 25% or more, but through related parties.

 If a person at least formally owns 25 percent or more of the authorized capital, he cannot be considered a beneficial owner because he is a nominal owner.

When is it still necessary to provide information about the ultimate beneficial owner?

 First, when creating a legal entity. Also, it is necessary to submit this information as when making changes to the information about jur. Person, and every year in accordance with Art. 17-1 of the Law №755.

 Notification of the ultimate beneficial owner is made by submitting an appropriate package of documents. It is necessary to submit a notarized copy of the identity document of the beneficiary (passport, residence permit). Also, a document on registration of a legal entity in the country of its location is submitted, in the case when the participant of the Ukrainian legal entity is a non-resident legal entity. In particular, it is necessary to submit a document that defines the ownership structure.

 If you have questions during the business: "Who is the ultimate beneficial owner, do you need to provide information about him, what information, when it should be submitted, what is the responsibility for failure to provide such information" - contact the professionals. "Prikhodko & Partners" Law Firm will be happy to advise you. We offer you legal support for your business to prevent violations of current legislation in your business, to optimize your business.