NCCG prepared comments and suggestions to the draft federal law "On Amendments to Certain Legislative Acts of the Russian Federation" (in the part of the obligation to disclose information about the beneficial owners of legal entity).
The bill introduces the obligation for all legal persons to have information about their beneficial owners; to take reasonable measures to establish the information about their beneficial owners; to fix, store and regularly update information on their beneficial owners and provide information of any measures taken to establish them at the request of the federal executive bodies authorized by the Government of the Russian Federation. The bill also proposed to require all participants (founders) of legal entities to provide information necessary to establish its beneficial owners of the company and introduced the responsibility for violation of disclosure of beneficial ownership of public authorities in the form of an administrative fine: upon officials from 30 000 to 40 000, for legal entities - from 300 000 to 500 000 rubles.
According to the results of examination of the text of the Draft Law NCCG prepared the following comments and suggestions:
1. The performance of the duties of the legal entity to disclose information about their beneficial owners (p. 1 of Article 6.1 of the Draft Law) does not depend on the will of the legal person as a legal entity is a subject to private law and does not have the authority to require the provision of information under compulsion.
2. From the p. 3 of Article 6.1 is not clear on what a regular basis (yearly, monthly, etc.) need to update information on their beneficial owners and way of it’s fixation, also the time limit for information storage is not provided.
3. P. 5 of Article 6.1 contains a provision that the founders (participants) of the legal entity must submit information at their disposal necessary for the establishment of its beneficial owners. However, it must be borne in mind that the relevant obligation can apply only to natural and legal persons under the jurisdiction of the Russian Federation.
4. We consider it necessary to limit the number of bodies at the request of that entity is required to provide information on their beneficial owners, leaving only the authorized body - the federal executive body that takes measures on counteraction to legalization (laundering) of proceeds from crime and financing of terrorism (Rosfinmonitoring).
5. P. 7 of Article 6.1 contains a provision stating that the information on the beneficial ownership of a legal entity shall be disclosed in the accounting (financial) statements in accordance with accounting legislation. Obviously, for the possibility of practical implementation of the provisions of this rule are required parallel changes in accounting legislation - otherwise this rule will not work.
6. As in p. 6.1 provides that corporate bodies to make available information on their beneficial ownership, or the measures taken to their establishment, it is necessary to supplement the disposition provisions proposed in the art. 14.25.1 of the Administrative Code indicating the specific measures, the adoption of which releases the entity from liability. Otherwise (a) is not obvious that the direction of information on measures taken are considered executed "duty of disclosure and presentation", and (b) the competent authority can’t conclude on the validity and accessibility of measures for the purposes of making a decision on the application of responsibility.