BERMUDA: Proposed Revisions to Beneficial Ownership Disclosures

The Bermuda Monetary Authority (BMA) has issued a consultation on proposed revisions to beneficial ownership disclosures.

Furthermore, on 9 April, 2016, the Bermuda Government and the UK Government signed the UK Exchange of Notes Agreement (the “UK Exchange Agreement”), in respect of the sharing of beneficial ownership information via a central registry, which has defined key requirements in relation to the information required in terms of the FATF standards. The effective date for implementing the terms of this agreement is 30 June, 2017.

Current Regime

Currently, the BMA vets all persons wishing to hold shares, interests or voting rights in a Bermuda legal entity. The BMA gives permission to legal entities to issue or transfer equity shares with voting rights or rights to appoint a director to non-resident persons. Where ownership results in an aggregate of 10% or more, the Authority vets the owners including the ultimate beneficial owners.

Proposed Changes to Bermuda’s Beneficial Ownership Disclosure Regime

• Implement comprehensive filing on beneficial owners of local companies;
• expand the disclosure requirements to include other types of controllers other than members with voting rights.
  This requirement not only refers to persons who own shares, interests or voting rights in a legal entity but also to any person who has control over a legal entity, although they may not specifically own any shares, interests, or voting rights;
• monitor changes in the “ultimate beneficial owners” of persons holding 10% or more, and filing such changes as part of the beneficial ownership registry;
• Introduce a new requirement for local companies to file any change in beneficial ownership or control of 10% or more with a central registry as and when it happens (and not just at the time of incorporation).
• impose a duty on all entities to take reasonable measures to identify and maintain information about their beneficial owners;
• impose a duty on all entities to specifically maintain a register of beneficial owners at the registered office, or other place, in Bermuda; and
• introduce additional statutory powers to request information and to impose civil sanctions.

Comments should be sent to the Bermuda Monetary Authority and addressed to policy@bma.bm or to the Ministry of Economic Development to mbinns@gov.bm no later than 22 May, 2017.

Please follow the link at the top of the page for more information.