BLP – Newsflash: Entry into force and application of the Regulations of the Registry of Transparency and Final Beneficiaries

 

As of September 1, 2019, all legal entities and other legal structures such as third-party resource administrators in favor of their clients, non-profit organizations and private trusts, including foreign trusts that carry out activities in Costa Rica, must provide annually to the platform administered by the Central Bank of Costa Rica all the information needed to determine and identify the final beneficiaries of such entities and structures in order to comply with the obligations established in the Law to Improve the Fight against Tax Fraud. This information must be supplied annually and within 15 days after any modification to the ownership composition occurs.

The following information must be provided: (i) determination of final beneficiaries who have substantive participation and all their identification information and (ii) email to receive notifications from the system. Those who are obliged to do so must safeguard the documentation in support of the information declared.

The Joint Resolution of General Scope for the Registry of Transparency and Final Beneficiaries establishes the information that must be provided through the use of a digital signature and the authorized legal representatives to provide this information on the platform. Likewise, such information may be provided through special attorneys whose power is granted in a public deed, where the notary public must register in the platform the power granted.

The ordinary declaration for the 2019 period will be made as of September 1, 2019, and if by January 31, 2020, the companies have not complied with the supply of information, they will be subject to sanctions. The statement must be made according to the following chronology in which the last digit of the legal identity document determines the month in which the legal entity must make the declaration:

Last digit of the identification document Month in which the declaration must be made
0 and 1 September 2019
2 and 3 October 2019
4 and 5 November 2019
6 and 7 December 2019
8 and 9 January 2020

Failure to provide the required information will result in inclusion on the list of non-compliers, with the consequent impediment to register documents in the National Registry, as well as subjection to economic sanctions.

BLP has expert lawyers in Business and Tax Law who advise on compliance with this new obligation.

For more information contact  info@blplegal.com