17 January 2020
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Uruguay has revised the legislative framework which establishes entities' obligations to identify their ultimate beneficial owners (UBOs) to also cover trusts issuing shares or securities, among other entities.
Under the rules, a beneficial owner is one holding, directly or indirectly, 15% of an entity's capital, or who otherwise exercises final control over the entity.
Following the amendments, the penalty for failing to identify said owners will not be imposed if they meet four requirements.
If an entity is able to prove to the Ministry of Economy and Finance's National Internal Audit department that it has good reasons that make it impossible to comply with the identification of UBOs, penalties will not apply.
If the entity has identified the beneficial owners of at least 85% of its integrated capital it will also not be penalised.
The last two requirements are that the shares were issued to the unidentified UBO prior to the enactment of Law No. 16,060 of 1989, and that the entity has alerted shareholders, via a registered publication such as the Official Gazette, to their requirement to comply, STEP reports.
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