The Bermuda Monetary Authority (the "BMA") announced
that there will be a refinement to the beneficial owner information
companies must submit to the BMA as part of the formation process
and under exchange control requirements.
Currently, during the formation process, the BMA has
responsibility to vet the registered and beneficial ownership of
shareholders. The existing policy requires enhanced due
diligence disclosure (i.e. a personal declaration and supporting
documentation) for any beneficial owner of 5% or more of the
ownership of that structure. The new policy is that enhanced
due diligence disclosure will only be required for beneficial
owners of 10% or more of the ownership of a structure. The new 10%
threshold, effective immediately, will also apply for companies
that are subject to exchange control seeking approvals (under the
Exchange Control Act 1972) from the BMA to transfer
securities.
The 10% threshold brings the jurisdiction in line with the
conservative end of international standards for 'know your
client' disclosure. It also accords with what most of
Bermuda's competitor international financial centres require of
owners of their structures. It is expected that this policy
change will aid the jurisdiction's competitiveness while in no
way sacrificing the probity for which it is rightly renowned.
Please click here to view the BMA's press release
or visit the BMA website.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
