The government is urging every company registered in Barbados to check, update and file its beneficial ownership information before the November deadline, as officials warn that compliance with the new law extends beyond international businesses.
Permanent Secretary in the Ministry of Energy, Business Development and Commerce Kevin Hunte said compliance with the new Beneficial Ownership, Transparency and Register Act was not limited to international businesses, stressing that every registered company had responsibilities under the new legislation.
He told reporters: “Let me put it plainly, because there’s a temptation to assume that this is a matter for international companies only. It is not.”
Hunte said every legal person incorporated, organised or registered in Barbados must take steps to identify its beneficial owners, the individuals who ultimately own or control the business.
Those details must be kept at the registered office and filed with the registry, with businesses required to confirm the information annually and notify authorities of any changes, he added.
The permanent secretary also warned that filings would not be considered complete until they were verified, with the legislation providing for administrative penalties and, ultimately, striking off.
Rather than issue a threat, Hunte issued this blunt appeal to businesses to check their records:
“I’m not here to threaten anyone this morning. I’m here to ask. If you’re a director, a corporate secretary… a member of BIBA…I will put it in Bajan. Guh back to yuh office and check. Make sure that your records are accurate, adequate, and up to date.”
Director of the International Business Unit in the Ministry of Business Sangene Watkins-Diagne said, however, that the response to the new requirements had so far been less than satisfactory, particularly among smaller businesses.
“There are two channels for filing beneficial ownership information, and for small companies, or companies earning less than BDS$1 million, that beneficial ownership information is filed through Business Barbados,” she said.
“So far the response has been, not as robust as we would want, so we really want to take this opportunity to encourage small companies, companies earning less than one million Barbados, limited partnerships, who do not have a corporate and trust service provider, to come and file your beneficial ownership information.”
Watkins-Diagne said officers at Business Barbados were available to assist companies through the process: “The process is quite simple. We have at Business Barbados a set of officers who are willing and well versed and able to assist in the filing process.”
She also appealed to small businesses that may have fallen behind on their annual returns not to allow that to prevent them from filing their beneficial ownership information.
“There are some small companies that seem to be concerned with the filing of their annual returns. They may not have filed annual returns and they’re holding back from filing their beneficial ownership information.”
Hunte said the push for greater transparency was also important to Barbados’ international reputation and competitiveness.
“Because in today’s global environment, transparency is no longer optional. It is the price of admission.
“When a correspondent bank or regulator in Brussels or an investor in Toronto asks whether Barbados knows who owns the companies on its register, the answer must be an unequivocal yes.”
He said the quality of information in the register would be critical to the country’s reputation, adding: “Compliance and competitiveness are not rivals. They are mutually reinforcing pillars.”
The legislation, passed in August, provides for registration windows and verification of filings, with non-compliance carrying administrative consequences.
(SB)
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