A beneficial owner is an individual who can control the business not only de jure, but also de facto. Beneficial owners are entrepreneurs whose status is determined on the basis of the provisions of Law No. 115-FZ - let's look at them in more detail.
Beneficiary: definition of the term
A beneficial owner - this is enshrined in the legislation of the Russian Federation - is recognized as an individual who directly or through third parties owns more than 25% of the capital of a legal entity or has the ability to exercise control over the actions of this legal entity (Article 3 of the Law “On Combating Money Laundering” dated 07.08.2001 No. 115-FZ). The law also provides for the status of the beneficial owner of an individual (by default, this is the same individual, unless there is reason to believe otherwise).
Example
The authorized capital of Salut LLC belongs 70% to Lux LLC, 20% to V. S. Petrov and 10% to A. V. Stepanov. At the same time, Stepanov owns 100% of the authorized capital of Lux LLC. Thus, Stepanov is the beneficial owner of Salyut LLC, despite the fact that de jure his share in this organization is 2 times less than Petrov’s share.
Thus, the status of a beneficial owner is a legal category, and its characteristics are prescribed at the level of industry-wide legal norms. However, what position can a beneficiary occupy in the business management structure? Let's consider how the key positions in the company of the founder and general director relate to the status of the beneficial owner - this is important from the point of view of a more detailed understanding of the role of beneficiaries at various levels of legal relations.
Is the beneficiary the founder or the CEO?
Fundamentally, it does not matter what position a person holds in a business - founder, director or co-owner. The main thing for establishing the status of the beneficial owner is the compliance of the person’s role in the business with the criteria defined in Art. 3 of Law No. 115-FZ. He can be the actual owner (without having a legally secured share in the business - we will consider the features of this status later in the article) and at the same time the general director, or de facto make key decisions in the management of the organization, while the director will be another person.
Of course, in general, the beneficial owner is the founder of the company (or one of them). But it is possible that he will be the person who subsequently purchased the required share of the authorized capital. There are common cases when the beneficial owner of a legal entity is the founder of the company that owns the main share of the relevant legal entity.
Example
Citizen Lvov A.E. owns 55% of the shares in PJSC Victoria, which, in turn, owns 70% of the shares in PJSC Almaz. In fact, Lvov does not directly own Almaz shares, but is an indirect participant in this company. The share of his indirect participation will be 0.55 × 0.70 = 0.385, or 38.5%. Consequently, Lvov has a dominant participation (more than 25%) in the capital of PJSC Almaz and meets the criteria of the beneficial owner of this company.
So, the concept of a beneficiary is enshrined in law. But can we say that the status of beneficial owner is the same concept as implied by another common term - “actual owner”?
Are the beneficiary and the actual owner (legal entity or individual) the same thing?
The concept of “actual owner” at the level of legislation of the Russian Federation, in turn, is not fixed. In some sources of law it is given in the same context as the term “beneficial owner” (for example, in the letter of the Ministry of Finance of the Russian Federation dated 04/09/2014 No. 03-00-РЗ/16236). Is it possible to identify them in this regard?
In principle, this is legal, and the reason for this is given by the definition of beneficial owner given in Law No. 115-FZ. This regulation states that a beneficiary may correspond to a person who has the ability to influence decisions made by a legal entity (even though he may not own any shares in the authorized capital of the company).
It is quite acceptable to call the “actual owner” a person who, for one reason or another, is the beneficial owner of an individual. Moreover, in this case it is legitimate to talk about some “pure form” of actual ownership, since the legislation does not provide for the allocation of the authorized capital of an individual. For example, the beneficiary (actual) owner of an individual can be called the recipient of funds indicated by the individual in his will.
Thus, the status of a beneficial owner is a legal category that can be identified with the concept of “actual owner,” and this identification is best applied in the context of control over the actions of a legal entity or an individual. In the context of ownership of the authorized capital of a legal entity, it is better to use only the term “beneficial owner”.
Which companies must keep records of beneficiaries?
Obligations for accounting of beneficiaries are assigned to legal entities other than:
- state or municipal structures;
- international organizations;
- by issuers of shares within the framework of organized trading (when disclosing information on securities in the prescribed manner);
- foreign issuers of shares as part of trading on a foreign exchange (if the exchange is included in the list determined by the Bank of the Russian Federation);
- foreign subjects of legal relations that do not have the status of a legal entity and do not provide for the presence of beneficiaries and the position of a general director.
Organizations are obliged to know their beneficiaries and, if necessary, take measures to obtain information about them listed in subparagraph. 1 clause 1 art. 7 of Law No. 115-FZ, update this information annually, store the received data for at least 5 years.
In addition, information about the beneficiaries of the company may be disclosed in its reporting - in the manner prescribed by law (clause 7, article 6.1 of law No. 115-FZ).
Which firms must disclose their beneficiaries?
Legal entities, as well as individual entrepreneurs, are required to provide information about beneficiaries upon request (Clause 6, Article 6.1 of Law No. 115-FZ, Clause 10 of the regulations approved by Decree of the Government of the Russian Federation of March 19, 2014 No. 209):
- to Rosfinmonitoring;
- to the Federal Tax Service.
In addition, when contacting an organization or individual entrepreneur that manages funds, the legal entity and individual entrepreneur provide information about their beneficial owners - this is also their legal obligation, provided for in paragraph 14 of Art. 7 of Law No. 115-FZ. The scope of this information is defined in paragraph. 2 subp. 1 clause 1 art. 7 of Law No. 115-FZ.
Failure by a company to provide information about beneficial owners to the specified government agencies is a reason for applying sanctions against it under Art. 14.25.1 Code of Administrative Offenses of the Russian Federation. Namely, a fine for officials in the amount of 30,000-40,000 rubles, for legal entities - 100,000-500,000 rubles.
Results
A beneficial owner is a founder or director, one of the owners or the actual owner of the company (even if de jure he does not own any shares in the authorized capital of the organization), who has the ability to at least control the activities of the relevant business entity. In this case, the organizational and legal status of this entity does not matter - it can be either a legal entity or an individual entrepreneur.
To legally determine the status of beneficial owner, it is necessary that an individual owns at least 25% of the authorized capital of the organization. Firms and individual entrepreneurs are required to inform Rosfinmonitoring, the Federal Tax Service, and organizations managing funds about their beneficiaries upon request.
You can learn more about the specifics of the work of financial control authorities (which, in particular, have the authority to request information about their beneficiaries from legal entities and individual entrepreneurs) in the articles:
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Hello, dear readers of the financial magazine “site”! In this article we want to tell you who the final beneficiary(beneficiary), who the beneficial owners are, how beneficiaries differ from beneficiaries, and so on.
After all, the development of economic relations implies the emergence of new subjects in this sphere of economic activity of society, for which special terms are used.
With the formation of a market economy, such subjects became categories of persons receiving profit from various types of business activities or generating income through the use of investment instruments. This term is used to identify such persons.
From the material you will learn:
- Beneficiary - who is he?
- Differences between beneficiaries and beneficiaries;
- Who is the beneficial owner (owner) and how to submit information about the beneficial owner - who needs it and why;
- How to stop violation of the rights of beneficiaries - rights and obligations
- and so on.
So, let's look at each point in detail.
From the article you will learn everything about the concept of “beneficiary” (beneficiary): who is and what it is, to whom and what information about the beneficial owners needs to be submitted, and much more.
This term comes from the French word meaning benefit, profit.
Therefore, the simplest definition of the term “ beneficiary" (Also beneficiary) is the person receiving the profit.
In a less simplified sense, beneficiary (beneficiary) - this is the person who actually owns the assets, business objects and other valuables of the organization.
In economic activity, not everything is determined by the amount of income received in a given period. The prospects and directions of profit-making activities are also important, and here the source of financial flow management is also important, because from their distribution and use, the viability of any commercial enterprise and the amount of income received also depend.
Therefore, in a broader sense, beneficiaries (beneficiaries) are considered not only individuals and legal entities who have income from certain financial transactions, but also persons who have the ability to control the activities of the organization and disposal of her property.
That is, beneficiaries are the persons who actually own a particular company.
2. Who are the beneficial owners - definition 📝
The legal definition of beneficial owner is contained in Federal Law of the Russian Federation No. 115 of 08/07/2001.
According to this definition:
Beneficial owner — This an individual who directly or indirectly has predominant participation in a legal entity ( more than 25%) and opportunity control actions legal entity.
The same regulatory act contains a definition of a beneficiary as a person for whose benefit actions are taken in relation to funds and property, including on the basis of relevant agreements ( agency, surety, trust management, commission).
Who is called the beneficial owner and who can become it
Depending on the scope of economic relations and situations arising in the process of disposing of property, the meaning of the term “beneficiary” may vary somewhat.
Based on the type of activity and relationship to property, beneficiaries may be:
- heirs indicated in the will as persons accepting certain property into ownership or management, as well as persons who are beneficiaries in the event of the death of the recipient of any payments;
- landlords who rent out property they own for a regular fee;
- bank account holders;
- clients of trust organizations who have provided their property or finances for trust management to generate income;
- owners of documentary letters of credit;
- persons who are recipients of payments under insurance contracts;
- actual owners of the companies.
To ensure their own safety or to avoid claims from various government bodies, in the modern financial world they very often resort to concealing information about the true owner of certain assets.
This especially often concerns the property and management of the economic activities of legal entities.
3. Beneficial owner of a legal entity - rights and features 📋
Beneficial owner of a legal entity - this is one or more actual owners of the organization who have right or opportunity direct or indirect impact on the company's activities.
At the same time, the personal data of such persons may not be specified in registration And statutory documents of the organization or their official involvement in the firm may be significantly downplayed.
The identity of such owners is usually known only bank employees And commercial agents .
The beneficiary of a legal entity can take part in the meeting of shareholders and other owners of the company, in which his voice is dominant in deciding issues related to the distribution of profits and the organization’s participation in investment projects.
Non-disclosure of information about actual owners used frequently:
- when conducting activities using offshore zones;
- when optimizing the taxation of organizations;
- when legalizing financial resources received in violation of legal requirements.
To ensure the participation of the actual owner in the activities of the organization without disclosing information about his identity, a variety of property registration schemes and legal documentation.
Basic schemes for registering the property of beneficiaries (beneficiaries). When constructing complex schemes for registering property and settlements, it is important to correctly and clearly understand and use the tax laws of the jurisdictions used. Only with proper construction and structure of the organization, they will truly turn out to be anonymous, tax-free or low-tax, protected from unfair actions of third parties
For example, a beneficiary gains access to company accounts on the basis of a power of attorney issued in his name by a nominee director. Ownership of property is carried out through ownership of bearer shares or by attracting persons, performing the functions of nominal shareholders.
Or the beneficiary enters into an agreement with the trust fund for the management of the company’s shares, access to the organization’s accounts and the ability to manage them, the beneficiary receives through a trustee.
4. Who is the final beneficiary - definition 📖
Definition of term - ultimate beneficiary
The chain of beneficiaries always ends with a specific person receiving a certain profit. This is the kind of face that is ultimate beneficiary.
Thus, ultimate beneficiary — this is an individual receiving profit from the activities of the company or property management.
5. The difference between a beneficial owner and a beneficiary is the main difference 📊
In a number of sources the concept beneficiary And beneficiary are identical, at the same time, in Russian legislation these two terms have some differences.
In this regard, regulatory authorities, as part of the fight against illegal actions it is the beneficial owners of the companies who are interested, as persons determining the policy of the organization and making decisions about possible illegal fraud.
6. Who needs information about beneficial owners and why 📌
Beneficial ownership information is important for government agencies in order to counter:
- legalization of proceeds from crime;
- financing of terrorist and other criminal organizations;
- illegal withdrawal of funds abroad.
For organizations who provide business lending, information about the final beneficiaries is important when making decisions about granting loans. Based on the identity of the beneficiary, the company’s reputation and the risks of its lending are assessed.
Reporting information about the final beneficiaries at the request of banking structures, is mandatory for organizations wishing to obtain a loan or open a bank account.
To submit information about the beneficial owner, we suggest downloading sample documents:
(doc. 60.5 kb)
(doc. 139 kb)
Sample of filling out the document (section 1)
Information about the beneficial owner - a sample of filling out the Sberbank form, section 1
At the same time, credit organizations in Russia must provide information about beneficiaries to Rosfinmonitoring.
Failure to comply with this requirement may result in the imposition of significant penalties on organizations related to financial transactions:
- securities market participants;
- Insurance companies;
- pawnshops;
- leasing companies (we already wrote about why it is needed in the previous article);
- credit organizations.
Who needs information about the owners of the company, including beneficiaries, and why?
Information about the actual owners may be requested from the company itself or state and municipal structures , as well as related commercial organizations .
In addition to countering illegal activities and financial fraud, such information may be requested when concluding various public procurement contracts.
When providing information about the owners, a document is drawn up containing information about the owners of the company, including individuals who are founders of organizations that are among the company's participants.
This certificate is called " Information about the chain of ownership, including beneficiaries", it contains information about the name of the company, its management, data of the founders ( company details, passport details, residential addresses of individuals).
Example of filling out a document:
An example of filling out the document “Information on the chain of ownership.” You can download the document from the link below.
Download example of filling and sample:
Instructions for filling out (doc. - 41.6 kb)
Table (example), where and what data should be specified:
7. General rights and obligations of the beneficiary (beneficiary) 📑
The beneficiary has a number of rights protected by law. Naturally, legislative protection is guaranteed only with documentation relationship between the beneficiary and his agents – nominee owners of the company and account V.
The beneficiary has the right:
- dispose of your share in the enterprise. The beneficiary may, for example, partially or fully sell his share;
- monitor the performance of duties by the company’s management, appoint and dismiss the general director on legal grounds;
- participate in shareholder and constituent meetings, in accordance with the share owned, participate in decision-making;
- receive income from the company's activities in accordance with the amount of dividends.
The functions and rights of the beneficiary vary depending on the sphere of economic relations in which the person acts as a beneficiary.
For example, if a company participates as a beneficiary in the provision of bank guarantees, it is obliged to promptly fulfill the relevant terms of the agreement.
In this case, the beneficiary company has the right to fulfill the obligations to repay the debt assumed by the guarantor organization.
8. Participation of the beneficiary (beneficiary) in insurance and inheritance
Beneficiary (beneficiary) in insurance - these are persons who receive insurance payments upon the occurrence of an insured event (under previously concluded insurance contracts).
At the same time, the beneficiary not necessary is the person or property owner insured in accordance with these contracts.
For example, when receiving a mortgage loan, the property that becomes the property of the borrower is insured, and the beneficiary, in the event of damage or destruction of the property that is the subject of the pledge, there will be a creditor . At least until the borrower fulfills the terms of the loan agreement.
The beneficiary of insurance payments can be determined by the insured person himself. For example, in life insurance, the beneficiary of the insurance may be the spouse of the insured person.
In inheritance matters beneficiary may change depending on the will of the testator or due to the death of persons specified in the will. Thus, property can be bequeathed to a relative, to whom the testator entrusts guardianship of minor children.
Or the will indicates the brother of the deceased, but if he dies before receiving the inheritance, the brother’s heirs (heirs by right of representation) will actually receive the property.
Thus, when distributing the inheritance, the beneficiaries will be the persons specified in the will and persons entitled to inheritance by law.
9. Participation of the beneficiary in the bank guarantee 📃
In banking, the service of providing a bank guarantee is currently widespread.
When concluding a transaction between two parties , the institution providing such a guarantee guarantees the fulfillment of obligations under the transaction by one of the parties or for the performance of the contract as a whole.
The transaction thus becomes tripartite, with the participation of:
- guarantor (organization providing the guarantee);
- beneficiary (the party to whom, for example, a monetary reward should be paid for fulfilling the terms of the transaction or certain services are provided);
- principal (the party applying for a bank guarantee).
Participation of the principal and beneficiary in a bank guarantee - scheme and principle of operation
Who are the principal and beneficiary in a bank guarantee - differences and features
Principal and beneficiary – these are absolutely opposite sides of legal relations. In this case, the beneficiary will be the creditor, but the principal will be the debtor, where a third party (guarantor) assumes responsibility for failure to fulfill obligations.
Guarantees of fulfillment of the terms of the contract may also be provided in order to ensure:
- making payments in specific situations;
- return of advance payments;
- execution of work under various contracts and tenders, including government ones. A bank guarantee is provided by the contractor to confirm his own financial solvency;
- movement of goods through customs;
- return of funds provided under lending agreements.
Despite the name, in practice such guarantees can also be provided insurance companies And commercial organizations at the request of the principal. This circumstance is classified as a legal conflict in the Russian Federation.
On the one hand, the issuance of guarantees legally relates to banking operations, and on the other hand, limiting the circle of persons acting as guarantors of the fulfillment of contractual obligations is contrary to international practice and unreasonably narrows the scope of use of this financial instrument.
For the performance of services classified by the Russian legislator as banking operations, the insurance company may be fined or its license may be revoked, given the seemingly natural capabilities of insurance companies to insure a commercial transaction by providing guarantees.
The beneficiaries of the existence of such a conflict may be banking institutions that actively lobby their own interests and currently have actual monopoly on the right to act as a guarantor in contracts. The cost of a bank guarantee varies from 2 to 10% on the amount of the guarantee payment.
The beneficiary of bank guarantees directly is the party to whom compensation is paid by the guarantor in case of failure of the principal to fulfill his obligations under the concluded transaction e.
10. Controlling persons and offshores 🗺
An offshore is considered to be a country or territory of a state with simplified conditions for doing business. We wrote in detail about when it is best to use them in the last issue.
In such economic zones there are great opportunities to hide data about the real owners of a business due to a special regime for registration and reporting of non-resident organizations.
The legislation of many countries regularly introduces various restrictions for residents to carry out transactions with organizations registered in offshore zones. However a complete ban is practically never applied anywhere.
The concept of “controlling person” was used before the term “beneficiary” appeared in domestic legislation. For the owner of a share in an enterprise to fall under this definition, it was necessary to own directly or indirectly more than 50% of the enterprise's shares or votes in the governing body. It was the size of participation in the organization that determined the availability of the opportunity to manage the enterprise.
This approach complicated the work of law enforcement agencies, because to evade responsibility it was enough to divide the property in the company between three owners(i.e. owner 49 % shares of the organization avoided responsibility).
The adoption by domestic legislators of the term “ beneficiary ", made it possible to somewhat reduce the discrepancy between terminology and the realities of economic activity, focusing, first of all, on the ability to control the organization.
Currently under controlling persons are understood as owners at least 10% shares of the enterprise, giving them the right to vote, as well as persons holding positions in the organization that allow them to influence decision-making processes in the company.
Protecting the rights of the beneficiary from the actions of third parties - basic recommendations
The rights of the beneficiary can be violated both by other business owners and by the management of his own enterprise.
The main ways of violating the rights of the actual owner are:
- Failure to comply with the agreement concluded between the owners or with the hired management of the company;
- The organization carries out illegal activities, including without an appropriate license;
- Reducing the beneficiary's ability to control the organization's activities;
- Concealment by the company's management of information about the actual state of affairs in the organization;
- An obstacle to obtaining income from the company's activities or property management.
To avoid the negative consequences of violating the rights of the beneficiary, it is recommended conclusion of written agreements , including trust management agreements.
Such agreements may provide non-disclosure of information about the beneficiary and actual owner of the property or company, as well as provide the opportunity to recover damages from illegal or unprofessional actions.
12. Are there organizations without beneficiaries 🔔
Organizations that do not have beneficiaries may be various non-profit associations, since their goal is not making a profit.
As for commercial organizations, then, of course, if there is profit, then there are also persons receiving income. However, often it is not possible to establish the final beneficiary.
Therefore, despite the fairly broad powers and capabilities of banking institutions and government agencies to identify the actual beneficiaries, existing schemes for concealing the true owners of a business allow you to keep the identity of the final beneficiary secret , especially in cases of trust management of business or property.
13. Conclusion + video on the topic 🎥
Given the relative novelty of the concept of beneficiary in the domestic economy, the practice of using this term, the definition of the rights, duties and responsibilities of beneficiaries in the activities of controlled commercial organizations and the management of various property, has not yet fully developed.
This is also hampered by the involvement of various politicians and civil servants in the shadow management of various financial structures and assets.
At the same time, it is ensuring transparency of information about the actual owners of property, shares and shares in enterprises, especially those with the ability to manage organizations, that will allow increase tax efficiency And protect bona fide market participants from involvement in various shadow and illegal financial frauds.
In conclusion, we suggest watching a video about clarifications on the beneficiary law:
Beneficiary is the recipient of profit; this term can have several meanings depending on the field of activity.
If we are talking about an insurance case, then the beneficiary is the recipient of the compensation specified in the insurance policy. If the person specified in the agreement does not live to see the end of its validity period, then another person may become the beneficiary. In relation to property insurance, any owner becomes the owner if the property is insured in his favor by another person.
In inheritance law, the beneficiary is the heir under the will.
A beneficiary is also a person who receives income from his property, for example, by receiving rent when renting out a property.
The concept of a beneficiary also applies to the owners of shares who transferred them to trust management in order to obtain maximum profit. Beneficiary shareholders have the right to transfer ownership rights, resolve issues regarding the company's activities, have the right to vote at a meeting of shareholders, as well as to participate in the selection of the company's management.
In a trust, the beneficiary is the person who receives financial benefit from the management of the trust property.
The term beneficiary is widely used in offshore business. In this case, this is the real owner of the business, who is also called the “ultimate beneficiary.” It is usually different from the nominal owner, who is indicated in the constituent documents. That is, de facto, the beneficiary is the owner of the business with all management rights and receives income from the company’s activities, but de jure the ownership right is assigned to other persons. The presence of nominee management is justified by maintaining confidentiality in relation to the final beneficiary.
Beneficiaries in banking activities
In banking, the concept of beneficiary is used in transactions with bank letters of credit, collection, guarantees and certificates.
When issuing a bank letter of credit, the beneficiary is the person in whose name it is opened, the owner of the documentary letter of credit.
As part of a collection banking transaction, the beneficiary is the recipient of the money after conducting banking transactions that confirm the buyer's receipt of the property as part of the transaction.
In relation to a bank certificate, the beneficiary is the recipient of funds under it upon expiration of its validity period. Since the certificates are unnamed, this is not necessarily the person who opened the bank certificate.
The beneficiary of the bank guarantee is the creditor, who must receive funds under the agreement.
Beneficiary– this is the person who is the recipient of funds, and to whose address the cash payment is made.
The beneficiary receives income from his property transferred into trust management to another person (legal or individual) when leasing or leasing the property or from the use of his property by third parties (for example, when the beneficiary-shareholder transfers shares for use to a broker to obtain maximum profit ( dividends)).
The beneficiary is also the person in whose favor the issuing bank opens a documentary document.
In practice, the beneficiary is the exporter, the seller of goods or services that are the subject of an international sales contract.
Who are the Beneficiaries
Beneficiaries may be:
heirs indicated in the will as persons receiving certain property for ownership or management;
landlords who rent out property they own for a regular fee;
bank account holders. The ultimate beneficial owner of a bank account is the person who has control over the funds or assets located in the bank account and directly or indirectly manages, controls and disposes of the account. In this case, the Beneficiary may not directly carry out operations on the account (replenishment of the account, transfer, withdrawal of funds from the account, etc.), but if, at his direction, these actions are performed by another person, then control and management of the account ultimately remains with him. And it is he who will be considered as the ultimate beneficial owner of the account;
persons who have provided their property or finances for trust management to receive income;
owners of documentary letters of credit;
persons who are recipients of payments under insurance contracts;
actual owners of the companies. In the case of company ownership, the ultimate beneficiary is the real owner of the company who receives income in the form of cash or other type of benefit from owning the company. This is the person who directly or through participation in other companies is the owner of the company. The ultimate beneficiary enjoys the rights of the owner of the company, although from a legal point of view, ownership may belong to another person.
The beneficial owner of the company, without disclosing his identity, has the opportunity to:
participate in the formation of its authorized capital;
choose the area of its activity;
transfer company shares to other persons;
participate in meetings of shareholders;
participate in the election of company directors.
Beneficiary Rights
The beneficiary has the right:
dispose of your share in the enterprise. The beneficiary may, for example, sell part or all of its share;
monitor the performance of duties by the company’s management, appoint and dismiss the general director on legal grounds;
participate in shareholder and constituent meetings, in accordance with the share owned, participate in decision-making;
receive income from the company's activities in accordance with the amount of dividends.
Protection of beneficiary rights
Russian legislation has given the beneficiary the right to go to court to protect their interests.
Other beneficiaries or the management of his own company can violate his rights:
by non-compliance with the terms of the contract concluded with him;
when the company conducts illegal activities or activities without a license;
when his rights to control in the company are reduced;
by concealing by the company's management the fact of infringement of its interests in the process of work;
under other circumstances that prevent him from receiving income, according to the terms of the agreement.
Who needs information about beneficiaries and why?
The ability of beneficial owners to participate in the management of the company and control its actions is of particular interest to various inspection bodies.
Information about beneficiaries is important for government agencies in order to counter:
legalization of funds obtained by criminal means in violation of the law;
financing of terrorist and other criminal organizations;
financial fraud;
illegal withdrawal of funds abroad;
other criminal acts.
For organizations providing business lending, information about the final beneficiaries is important when deciding whether to provide loans.
Based on the identity of the beneficiary, the company’s reputation and the risks of its lending are assessed.
Credit institutions in Russia must provide information about beneficiaries to Rosfinmonitoring.
If banks allow such data to be concealed, this will entail a fine of up to 500 thousand rubles.
The beneficiary, who is the owner of the company, has the obligation to provide information about himself in response to requests from regulatory authorities, when concluding contracts and agreements with state-owned enterprises.
The collection of such information is carried out to obtain the greatest transparency of the actions of the company itself and to identify its real owners.
If a company signs contracts with government or credit organizations, it must provide the following information about the owners down to the final beneficiaries:
passport details;
the actual residential address of the beneficiary;
full beneficiary profile.
Without providing this information, the contract will not be concluded.
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Enterprises in reality have a common beneficiary. So let's go back to the example.)