What new personal data to collect and store about shareholders under the new legal regulation?
As a result of implementation of the 4th EU Money Laundering Prevention Directive, from 1 January 2019 amendments to Lithuania’s Law on Prevention of Money Laundering and Terrorist Financing entered into force.
Companies, except state-owned and municipal-owned companies, must provide personal data about their beneficiaries to the Legal Entities Information System (JADIS). The amendments impose a legal obligation on companies to obtain, update and store accurate information about their beneficiaries – name, date of birth, personal identification number, country of issue of identity document, residence, ownership rights and amount (% of shares, % of voting rights) or other controlling rights (chairman of the board, board member, manager, senior manager, other duties and obligations, details of voting rights transferred).
The ultimate beneficial owner is held to be a natural person who directly or indirectly controls more than 25 percent of the voting rights in the company.
It should be noted that data must be provided not only about the ultimate beneficial owner but also about the whole governance structure of a group of companies, i.e. about all legal entities up to the ultimate beneficial owner, a natural person.
Although the new legislation significantly increases the amount of personal data that must be provided, the objective of the amendments is to ensure and to increase transparency, quality of information about the actual owners of legal entities, and to make data on beneficial owners more reliable as well.
At present fines for violations of Lithuania’s Law on Prevention of Money Laundering and Terrorist Financing may amount from 0.5 to 5 percent of annual income.
Law of the Republic of Lithuania on Prevention of Money Laundering and Terrorist Financing