Gerald Nash (Louth, Labour)
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212. To ask the Minister for Finance the status of the national register of beneficial owners; his views on the European Commission recommendation in a recent report (details supplied); the way in which he plans to monitor the quality of the information provided and the effectiveness of the register; and if he will make a statement on the matter. [14608/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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Statutory Instrument 110 of 2019, the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019, was signed into law on 22 March 2019. These Regulations transpose Article 30 of the Fourth Anti-Money Laundering Directive (as amended by the Fifth Anti-Money Laundering Directive) and maintain the obligation, first established in 2016, for corporate entities to obtain and hold information on their beneficial ownership.

The Regulations also provide for the establishment of a Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies (RBO), an office of the Department of Enterprise, Trade and Employment. This central register began accepting filings in July 2019. While the relevant legislation was signed by myself as Minister for Finance, the register is maintained by a “Registrar of Beneficial Ownership of Companies and Industrial and Provident Societies”, as provided under Regulation 18 of SI 110/2019, who was appointed by the Minister for Enterprise, Trade and Employment.

To date, 81% of companies and 63% of societies have registered their beneficial ownership details with the RBO. I understand that the Registrar plans to issue further reminders to those companies and societies who have not yet filed with the RBO in the coming months.

Regarding the quality of the information and the effectiveness of the Register, the very purpose of the Register is to maintain an accurate record of beneficial ownership for all relevant entities and this is facilitated by the use of Personal Public Service Numbers (PPSNs) to validate and verify a beneficial owner’s identity. There is a legal obligation to provide accurate information to the register and to update this when changes occur.

The Regulations also require that if a designated person forms the opinion that there is a discrepancy between the information in the central register (RBO) and the information the entity is required to hold in its internal register of beneficial ownership, he/she/it must inform the Registrar of that opinion, specifying the particulars about which the discrepancy exists. Designated persons are persons who carry out customer due diligence on an entity, or otherwise, under the Regulations and include credit institutions, financial institutions, auditors, external accountants, tax advisors and property service providers among others. A designated person who fails to comply with the requirement to report a discrepancy commits an offence and shall be liable on summary conviction to a Class A fine.

The Regulations also state that where a relevant person, namely a competent authority, the Garda Síochána, the Revenue Commissioners or the Criminal Assets Bureau, forms the opinion that there is a discrepancy between the information relating to a relevant entity in RBO and the beneficial ownership information available to the relevant person, relating to the same entity (to the extent that it does not interfere unnecessarily with the performance of its functions), the relevant person shall deliver, in a timely manner, to the Registrar, notice of that opinion specifying the particulars of the discrepancy.

Under the Regulations, a relevant entity that fails to comply with a notice served by the Registrar in relation to a discrepancy, shall be liable (a) on summary conviction, to a Class A fine; or (b) on conviction on indictment, to a fine not exceeding €500,000.

The Regulations further state that a body corporate, or natural person, who knowingly files false information with the RBO commits an offence and shall be liable (a) on summary conviction, to a Class A fine, or imprisonment for a term not exceeding 12 months or both; or (b) on conviction on indictment, to a fine not exceeding €500,000, or imprisonment for a term not exceeding 12 months, or both.

I also understand that the RBO maintains statistics on compliance levels, website usage and requests for beneficial ownership information.

The combination of these provisions will help ensure that the information held in the Register of beneficial ownership is accurate and will enhance its overall effectiveness.