Archives: Blocks

New regulations affecting the beneficial ownership of corporate entities came into effect this year. Marese Stafford, ACIS AITI explains what’s changing and how to comply with the requirements.

 

Minister Paschal Donohoe recently signed into law The European Union (Anti Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019. Among other requirements, the new rules, which replace earlier (2016) regulations, require companies, trusts and certain other organisations to obtain and hold information on their beneficial owners. It is important to understand the changes as penalties, including fines of up to €500,000 and a possible custodial sentence of up to 12 months, can be imposed for failing to comply with the new regulations.

 

Who is affected?

 

Relevant entities under the new rules include Irish companies, Irish Collective Asset Management Vehicles (ICAVs), industrial and provident societies and other bodies corporate. A beneficial owner is any natural person who directly or indirectly owns or controls a shareholding of 25% plus one share.

What is changing?

The new rules impose a duty to submit certain information to a new Central Register of Beneficial of Ownership of Companies and Industrial and Provident Societies (Central Register). Corporates in existence at 29 July 2019 must upload their information by 22 November 2019. Those incorporated on/or after 29 July 2019 will have 4 months within which to deliver the required information. As was the case under the old rules, a relevant entity must keep adequate, accurate and current information in respect of its beneficial owners and state the nature and extent of the control exercised by them.

What information must be provided to the Central Register?

 

Relevant entities must provide the following details in respect of their beneficial owner(s):

 

  • Name
  • Date of birth
  • Nationality
  • Residential address
  • PPS number
  • Statement of the nature and extent of interest.

 

Information on the Central Register must be kept up to date. Non-compliance, or provision of false information, could lead to fines of up to €500,000 and a custodial sentence of up to 12 months.

What if we can’t identify a beneficial owner?

 

The regulations state, that if after having exhausted all possible means and provided there are no grounds for suspicion by the relevant entity, no natural person is identified — or if there is any doubt that any natural person identified is a beneficial owner of the relevant entity —the names of the one or more natural persons who hold the position of senior managing officials of the relevant entity shall be entered on the Central Register.

How do I provide information?

 

A new online platform www.rbo.gov.ie has been launched.

Who can access the Central Register?

 

Unrestricted access to the information on the Central Register is given to An Garda Síochána, members of the Financial Intelligence Unit (FIU), the Revenue Commissioners, the Criminal Assets Bureau, and other bodies engaged in the prevention, detection or investigation of possible money laundering or terrorist financing. The general public and other designation persons will be allowed restricted access but will not be able to access private residential addresses and PPS numbers.

Need help?

 

The new regulations — S.I. No. 110/2019 – European Union (Anti-Money Laundering: Beneficial Ownership Of Corporate Entities) Regulations 2019 — are available online (www.irishstatutebook.ie). If you have questions, or need more information about what they mean for you, please contact a member of our team.

Testimonials

"Sheil Kinnear acted for my father Gerry McCauley since he established the initial family chemist shop in Enniscorthy in 1953 and subsequently for myself and my wife Leslie when we acquired the business in 1983. They have been an invaluable support ever since and as trusted advisers and auditors were an integral part of our support team in growing and expanding the business to 30 pharmacies. They excelled in providing a prompt and professional service at all times right up to the successful sale of a majority stake in the business in 2017 and continue to provide me with financial management services subsequent to the sale. I have always valued the support and advice they have given me on my business journey."

Sam McCauley

"Sheil Kinnear have been professional advisers and auditors to Wexford Farmers Co-op over a long number of years and during that time have expertly advised and guided us through mergers, acquisitions and re-structure. We have found Sheil Kinnear to be very diligent and professional in their engagement with us and in addition to our annual audit they continue to provide us with guidance and advice on a range of matters including Banking, Taxation and Secretarial compliance issues. "

Frank Devoy – Wexford Farmers’ Co-Op

"For me I always appreciated your mentoring support when we started up and did not have any money or turnover. You really helped us get our cashflow statements together as well as getting us to a stage of being CRO compliant and doing annual accounts. We were able to get support on all our tax, VAT and reporting requirements. Even for attaining an overdraft facility from AIB when banks had stopped lending money. Your presence and referral in that meeting added a lot of credibility that definitely helped us secure that overdraft which was important to us at the time. I know that you went above and beyond the call of duty. Since then our scale in size has been no problem for you guys, you have been able to support us now as a $50m company. You have been great in helping us on the recruitment and replacement side too and are always available by phone or email at any time of the day or night. Even if it is a question about personal taxes or compliance you're happy to help."

Dermot O’Shea – Taoglas

"We have engaged the services of Sheil Kinnear on audit, tax, statutory and related issues for over 25 years. The overall level of service provided is consistently top class, in terms of their in-depth knowledge, the quality and clarity of advice and their speed of response."

Kieran Noonan – Noonan Construction Group

"When we set up DoneDeal we needed a skilful financial company to help us manage the growth. Sheil Kinnear was a great support from the start. They provided timely and professional services as well as insightful and competent advice. They were also a great resource when we sold the business. We are very happy to recommend their services."

Fred & Geraldine Karlsson – Founders of Done Deal

HISTORY OF

THE FIRM

Sheil Kinnear was founded in the 19th Century by Joseph Lawton, with the firm taking its current form following a merger between Mr. Jimmy Sheil’s firm and J.A. Kinnear & Co in 1969. The firm is one of the oldest practices in the country and has stood the test of time through various economic peaks and troughs.

The firm has its headquarters in a 6,000 square foot office in Sinnottstown Business Park, Drinagh, Wexford with offices in Enniscorthy and Arklow. Sheil Kinnear is an active member of the Charter Group, a network of ten chartered accountancy firms located nationwide. On the 9th of September 2019, O’ Gorman Cosgrave merged with Sheil Kinnear to create one of the largest accountancy practices in the South East.

At Sheil Kinnear, we are very proud of the large number of success stories that the firm has had over the years, with numerous clients commencing their business journey with us and going from small beginnings to very profitable enterprises.

We are large enough to handle the most complex cases yet small enough to give you and your business the personal attention required.