Adjustments have been announced to the Isle of Man Beneficial Ownership (Amendment) Bill 2020 and are due to come into force on 1st September 2021.
The proposed changes follow the Island’s Mutual Evaluation Report 2016, conducted by MONEYVAL, and are intended to further improve the accuracy of the database which records beneficial ownership – defined as the natural person or people who ultimately own or control a company, limited partnership or foundation.
Who Does It Affect?
The Act defines any beneficial owner who owns or controls more than 25 per cent of the beneficial ownership of a legal entity to which this Act applies as a “registrable beneficial owner” and the required details of any registrable beneficial owner must be submitted electronically to the Isle of Man Database of Beneficial Ownership by the nominated officer/CSP.
What Changes Are Being Made?
The key change to the bill is a reduction in the reporting timescales from 1-month to within 21-days.
Meaning the legal owner must now give notice to the legal entity’s nominated officer of the required details of each beneficial owner or the legal owners interest within 21-days of incorporation and the date of notice received under subsection (2). This also applies to a legal owner when finding any changes to the beneficial owners’ details.