Important notification for all companies where any of the shareholder is not a natural person.
Introduction
Securities and Exchange Commission of Pakistan issued Circular 16 of 2018 ref: CLD/CCD/AML/FATF/Rec.24/2018 dated August 29, 2018.
Commentary
Section 453 of the Companies Act, 2017 and recommendations of Financial Action Task Force (FATF) requires up to date information of Ultimate beneficial owners (natural persons not legal) to prevent money laundering and terrorist financing.
Accordingly, the Circular 16 of 2018 dated August 29, 2018, sets requirement of maintaining a Register of ultimate beneficial ownership information by the companies. The following minimum information of a natural person being Ultimate Beneficial Owner, is to be entered on this Register:
- Full name
- Father’s/husband name
- NIC/NICOP/Passport number
- Nationality, country of origin (foreign national or dual national)
- Email address (if available)
- Usual residential address
- Date on which name was entered or ceased with reasons for.
The purpose is to identify only the “natural person” in control and not legal persons like companies/trust etc, however, if in exceptional circumstances where natural person cannot be identified, following particulars of senior managing official(s) of the “legal person”:
- Names
- Date of birth
- NIC/NICOP/Passport number,
- Nationality
- Residential addresses
The time line of 90 days from the date of this circular has been given to Companies having “legal person” as their members/shareholders, and within 30 days after any subsequent change.
The companies are required to authorize CEO or a Director to submit this information, if required by any Govt agency authorized in this behalf.
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