Dear Editor,
By a 2018 amendment to the Anti-Money Laundering…. Act, the Companies Act was amended to require companies to file with the Commercial Registry “relevant information of beneficial ownership on a regular basis or on demand from the Registrar.” Failure to do so carries an astounding “fine of not less than 10 million nor more than $40 million and to imprisonment for a term not exceeding three years.”
The amendment makes it clear that beneficial ownership means ownership by an individual of voting rights represented by 25% of the share capital of the company. Yet, the Commercial Registry is asking for particulars of beneficial ownership which is stated as a company and particulars of shareholders who own below 25%, clearly in violation of the law.
I have made representation to various interested parties and to the Commercial Registry. Instead of correcting its error, the Commercial Registry is doubling down, requiring not only the information on shareholders below 25%, but is now requesting a copy of the Directors Resolution. Apparently, the Commercial Registry does not appreciate that a resolution is an internal document while documents filed with the Commercial Registry are public documents. With a little bit of experience, the public officials would know that the preparation of beneficial ownership information is an administrative function carried out, even at the highest level in any company, at that of the company secretary.
Unfortunately, this is not the only irrational and unlawful request by the Commercial Registry. A couple days ago, they refused to accept a foreign passport as an ID because the person who migrated to Guyana years ago, “does not have a foreign residential address”. Then we hear that it is the FIU or some official from the AG’s Chambers.
The recently passed Guyana Compliance Commission Act gives the Commercial Registry even more powers and functions. Unless there is a drastic change in how such powers and functions are exercised, individuals and entities will find it increasingly difficult and more costly to do business in Guyana.
Christopher Ram