BEIS discussion paper on the transposition of article 30 – Law Society response
In November 2016 the Department for Business, Energy and Industrial Strategy (BEIS) published a discussion paper outlining possible approaches to the transposition of article 30 of the Fourth Money Laundering Directive.
The paper addressed the requirement for:
- EU member states to maintain a central register of beneficial ownership information of corporate and other legal entities in their territory
- this information should be made available to specific authorities and organisations in the EU.
The UK already has a register. However the requirements of the directive are different from existing UK legislation. The discussion paper addressed those areas and outlined ways for amending the UK requirements to meet the directive's requirements.
We broadly agreed with the approach to the entities considered in scope and not in scope of article 30.
We pointed out that a number of entities which, under the proposals, will be caught by the person of significant control (PSC) requirements includes entities which are not obviously commercial. We stated there will need to be a sufficient period of transition to allow affected entities and persons to:
(a) understand the rules that will apply and
(b) put in place policies and procedures to respond to them.