Limited liability companies that belong to foreign companies must promptly inform Register of Enterprises about their true beneficiaries

RIGA - Limited liability companies that belong to foreign companies must promptly inform the Register of Enterprises about their true beneficiaries, the register informed LETA.

If such a limited liability company fails to inform the Register of Enterprises about its true beneficiaries, the company's operations may be halted, the register pointed out.

Amendments to the Law on the Prevention of Money Laundering and Terrorism Financing, which oblige companies to inform the Register of Enterprises about their true beneficiaries, came into force on November 7, 2017.

The Register of Enterprises is satisfied with the pace at which legal entities to which the amendments apply inform the register about their true beneficiaries. One exception is limited liability companies that belong to foreign companies, which are especially reluctant to tell the Register of Enterprises about their actual owners. These legal entities, however, are the ones that are more likely to be used in criminal activities, as confirmed by the Moneyval report on business environment in Latvia, the Register of Enterprises points out.