Changes have been made to the Isle of Man Beneficial Ownership (Amendment) Bill 2020 and will come into force on 1st September 2021
The proposed changes follow the Island’s Mutual Evaluation Report 2016, conducted by MONEYVAL, and are intended to further improve the accuracy of the database which records beneficial ownership – defined as the natural person or people who ultimately own or control a company, limited partnership or foundation.
Who Does It Affect?
The Act defines any beneficial owner who owns or controls more than 25% of the beneficial ownership of a legal entity to which this Act applies as a “registrable beneficial owner” and the required details of any registrable beneficial owner must be submitted electronically to the Isle of Man Database of Beneficial Ownership by the nominated officer/CSP.
What Changes Are Being Made?
The key change to the bill is a reduction in the reporting timescales from 1-month to within 21-days.
Meaning the legal owner must now give notice to the legal entity’s nominated officer of the required details of each beneficial owner or the legal owners interest within 21-days of incorporation and the date of notice received under subsection (2). This also applies to a legal owner when finding any changes to the beneficial owners’ details.
Isle of Man Governments Comments
Treasury Minister Alfred Cannan says the introduction of these changes send a clear message that the Island is a responsible, and responsive, jurisdiction committed to following international financial standards.
He adds: “Establishing the beneficial ownership database in 2017 placed us on a firm footing following the 2016 MONEYVAL report and underlined a commitment to the UK Government to improve agreements for the sharing of information on beneficial ownership.
“I urge all registered businesses, legal entities and their nominated officers to be aware of their obligations and make any changes which may be necessary before the amended legislation comes into force in less than three months’ time.”
To read the amended bill, follow the link: