IDENTIFY YOUR ACTUAL BENEFICIAIRIES: A NEW OBLIGATION FOR THE COMPANIES

Due to the latest EU law update on anti-money laundering, companies had to identify their actual beneficiaries and record them towards the Trade register before 2018, April the 1st.

Who is obliged to proceed to the deposit of the document concerning the Actual Beneficiary?
– All the French companies, civil, agricultural and commercial, with the exception of those whose titles are admitted in the negotiation on a regulated market 2.
– All the foreign trading companies (sit except EU) having an establishment in France.

How should be done?
This obligation consists in identifying their actual beneficiaries and the methods of assessment which they exercise on the company. On no circumstances, one can involve a legal entity on this process.

The most common beneficiary is either one or several physical persons who hold, directly or indirectly, more of 25 % of the capital or voting rights of the company. In case the law is broken, penalties may range from a 7.500 € to 37.500€ fine or a 6month period of detention.

What will happen from now on?
This obligation with retroactive effect for the already registered companies showed to be expensive and fastidious. It is highly recommended –authorities keep track of it- to maintain updated this record. Furthermore, any change concerning the complete Actual Beneficiary must be registered again with the same procedure.

Few remarks are to be formulated:

-The implementation and the cost of the law have to be supported by the companies and can result expensive for them.
-There are doubts if the cost will be the same in all European countries. We are already waiting for any comparative study that may be published in the following months.
-The information provided to the Trade Register may be transferred to third parties within the governmental structures of the concerned country.

adminex can help you with this new legal framework by applying our philosophy of advice, as our range of services includes the management of these procedures. For further information, please contact us through our French partner Nadine Blain: nadine.blain@adminex.com