The Register of Beneficial Owners of Panama

The Panama National Assembly finally approved a bill establishing a The Register of Beneficial Owners. In this article, we look at what the Register of Beneficial Owners of Panama is.

According to the bill, all companies registered in Panama are required to contribute information about their beneficial owners through their resident agents. Such agents can be either the lawyers appointed by them or a separate law firm. They will conclude an agreement with agents on the storage and updating of information on property rights.

In the bill, the term “beneficiary” means “any person who directly or indirectly owns, controls or has a significant influence on the business, as well as a private person who benefits from the transaction, including those who ultimately control the decisions of this legal entity.”

The law applies to any person who owns more than 25% of the shares or voting right. This law applies to all Panamanian corporations, regardless of whether the resident or non-resident is the ultimate beneficiary, and whether he has assets in Panama or not.

The exact date of entry into force of the bill is not yet known, since it has not yet been approved by the executive branch. When the law comes into force, resident agents will have 30 working days to submit / update information on the beneficial owners of all companies registered in Panama.

Information about the beneficiary should include: name and surname, tax identification number, date of birth, nationality, address and date when he or she became the beneficial owner.

Information about the legal entity must contain its full name, registration number in the Panama State Register, date of registration, address and description of the main business activity.

What is the punishment for breaking the law?

1. Fines range from $ 1,000 to $ 5,000.
2. The bill provides for the following system of fines: a penalty is levied at a rate of 10% of the previous fine for each day of delay in registration or renewal, for a maximum of six months.
3. An organization that has not registered or updated its information will be suspended. If it does not rectify the situation within two years, it will be removed from the beneficial ownership register.
4. The bill indicates that beneficial ownership information will be kept confidential, which means that those who do not keep data secret will be fined $ 200,000.
5. A person who has gained access to the beneficial ownership register without authorization is subject to a fine of $ 500,000.

We draw your attention to the fact that this article is for informational purposes only. For more advice, contact us at the contacts listed on the site.