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Consequences of non-compliance with Register of Beneficial Ownership

Non-Compliance of RBO Filing

By Sinéad Floody, 20th May 2022

The Registrar of Companies, Maureen O’Sullivan, announced at a recent conference that the Register of Beneficial Ownership (RBO) is now issuing summons’ to companies that have yet to make their RBO filing, for court hearings later this year. This active enforcement of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended by the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 has been in the pipeline since the Central RBO register went live in July 2019.

All companies incorporated prior to 22nd June 2019 were given until 22nd November 2019 to make their filing. Any companies incorporated after 22nd June 2019 have 5 months from their date of incorporation to make their RBO filing. In the case of a change in beneficial ownership, the RBO must be updated within 14 days of the change being made.

RBO Compliance

The introduction of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 saw a rise in compliance with the RBO as ‘designated persons’ under the act are now obliged to not only check that the RBO has been filed and is accurate, but to report any discrepancies to the RBO, in advance of commencing a business relationship with the company. This means that accountants, solicitors, banks and trust or company service providers (TCSPs) must ensure the RBO filing has been made prior to taking a client on or opening an account for them. The Registrar also spoke of the large increase in searches and non-compliance or discrepancy reports made to the RBO by designated persons.

Penalties for RBO Non-Compliance

The RBO is now close to 90% compliance, whilst the approximate 10% of non-compliant companies should now expect a summons. This impending court appearance could attract a Class A fine of up to €5,000 and on conviction on indictment to a fine of up to €500,000. To mitigate the likelihood of this, simply order our RBO service here.

Need Assistance?

If you have any questions regarding the information in this article or if you need assistance with your Register of Beneficial Ownership filing, please don’t hesitate to contact us today at +353 1 6461625 or email  cosec@companybureau.ie. A member of our Company Secretarial team would be happy to assist you.

 

Disclaimer This article is for guidance purposes only. It does not constitute legal or professional advice. No liability is accepted by Company Bureau for any action taken or not taken in reliance on the information set out in this article. Professional or legal advice should be obtained before taking or refraining from any action as a result of this article. Any and all information is subject to change. 

Sinéad Floody ACG

Corporate Services Manager - Sinéad is a Chartered Secretary and is an Associate Member of the Governance Institute, formerly known as the ICSA. Sinéad achieved a first-class honours in the MSc. in Management & Corporate Governance at Ulster University and holds a Bachelor of Irish Law (LLB). Sinéad is an integral part of our team heading up our Company Secretarial Department and has worked for the company for over 7 years. As a leader of good governance, Sinéad is skilled and approachable as she assists her team to provide exceptional services to our customers. We are pleased to share that Sinéad has been appointed to the ICSA Company Secretarial Practice Committee. As a Chartered member, she holds an important role in upholding the Code of Professional Standards and Ethics. Sinéad often lends her knowledge and experience, having had articles published with the ICSA. Sinéad has assisted thousands of Irish companies with their quest for good governance and compliance.