S.L. 123.127 Art. 4Availability of ownership information.

(1) Entities shall keep updated information that identifies their owners and the level and type of their respective ownership stakes in such entities, including information on legal and beneficial owners. Such information is to be updated and documented not later than fourteen days from the date that the entity was notified or from the date the entity becomes aware of there being a new owner or of any change relating to existing owners. For the purposes of these regulations, "owners" include -

(a) in the case of a company, partnership and other any other body of persons (other than a foundation), the legal owners and the beneficial owners; and

(b) in the case of a foundation, the founders, the administrators, the members of the supervisory council, and the beneficiaries (where applicable), as well as any other person with the authority to represent the foundation;

(c) for the purposes of paragraph (a) and (b) above, the term ‘beneficiaries’ shall mean both beneficiaries as identified in terms of article 2(1) of the Trusts and Trustees Act and beneficial owners as defined in regulation 2.

(2) The provisions of sub-regulation (1) do not apply to -

(a) a publicly-traded company: provided that in the case of a publicly-traded company that is either resident in Malta or created under Maltese law, the required ownership information in relation to such companies is to be kept either by the company itself or by a central securities depository resident in Malta. For the purposes of this paragraph, "central securities depository" has the meaning found in article 2 of the Financial Markets Act; and

(b) public collective investment schemes.

(3) For the purposes of these regulations -

(a) where in any instance within an ownership chain, the legal owner acts on behalf of any other person as a trustee, fiduciary (including nominee) or under a similar arrangement, such a legal owner shall have the obligation to keep the information that identifies such other person;

(b) a company that has issued share warrants in accordance with article 121 of the Companies Act shall inform the competent authority in Malta of such issue not later than one month from the date of publication of these regulations in the case of share warrants issued before the said date, or fourteen days after the date of any issue made after the said date. Such companies shall also keep a register with the information that identifies the owners of such share warrants. Notwithstanding any other provision in any Act, a person in possession of a share warrant shall not be entitled to any rights in relation to such share warrant unless the relevant company has been provided with the information that identifies such person. Furthermore, notwithstanding any other provision in any Act, a transfer of such share warrant shall not be valid at law if the relevant company has not been informed within fourteen days of the said transfer of the information that identifies the new owner: Provided that the provisions of the preceding paragraph shall have effect up to 27 December 2017.

(4) (a) Trustees that are established under the laws of Malta or that are resident in Malta shall take all reasonable measures to ensure that updated information is kept that identifies the settlor, other trustees, the protector (if any) and beneficiaries of express trusts (whether the proper law of such trusts is that of Malta or elsewhere).

(b) Persons that are established under the laws of Malta or that are resident in Malta and that are entrusted with the administration of express trusts (whether the proper law of such trusts is that of Malta or elsewhere) shall have the same obligations as those found under paragraph (a).

(5) Information that identifies a person includes -

(a) in the case of an individual:

(i) the full name and surname;

(ii) the passport number, ID number or tax identification number;

(iii) date and place of birth if no number referred to in sub-paragraph (ii) is available; and

(iv) address of residence;

(b) in the case of persons that are not individuals:

(i) name;

(ii) date of inception or incorporation; and

(iii) registered address.

(6) Information that identifies a person is to be kept in Malta. However, such records may be kept in a jurisdiction with which Malta has an arrangement, that would permit exchange of ownership information.

(7) Individuals (engaged in a trade, business, profession or vocation), entities and trustees are to ensure that reliable books of account are kept that -

(a) correctly explain all transactions of such individual, entity or trust;

(b) enable the financial position of such individual, entity or trust to be determined with reasonable accuracy at any time; and

(c) allow financial statements to be prepared.

(8) Apart from the books of account referred to in sub-regulation (7) records to be kept shall further include underlying documentation, such as invoices, contracts, etc. and should reflect details of -

(a) all sums of money received and expended and the matters in respect of which the receipt and expenditure takes place;

(b) all sales and purchases and other transactions; and

(c) the assets and liabilities of the relevant individual, entity or trust.

(9) In the case of a company that is considered to be an entity for the purposes of these regulations, the financial statements are to be prepared and audited as required under the Companies Act or the Co-operatives Act, as the case may be.

(10) Accounting records are to be kept in Malta. However, such records may be kept in a jurisdiction with which Malta has an arrangement that would permit exchange of information of such records.

(11) Banks that are considered to be entities for the purposes of these regulations are to ensure that banking information is kept on all account-holders in relation to their banking activity in Malta.

For the purposes of these regulations, "banking information"

includes:

(a) information that identifies the legal owners of the accounts;

(b) information that identifies the beneficial owners of the accounts; and

(c) all records pertaining to the accounts and to related financial transactional information.

(12) The information that is required to be kept in accordance with this regulation shall be kept in such a way that it may be submitted without difficulty to the Commissioner following a request made pursuant to the provisions of article 10A of the Income Tax Management Act. Where, following representations made by the requested person, the Commissioner is satisfied that for reasons that are beyond the control of such requested person, information cannot be submitted within the time limit specified in the original request made by the Commissioner to such requested person, the Commissioner shall consider allowing such other time limit as may be reasonable for the particular case. In such cases, the provisions of regulation 6(1) and (2) shall apply taking into consideration such other time limit that is determined by the Commissioner.

(13) Subject to the provisions of article 19 of the Income Tax Management Act, entities, trustees and other persons that are required to keep information, records or documents under any of the provisions of this regulation shall keep such information, records and documents for a minimum period of five years from the end of the year in which the relevant transactions, acts or operations took place (including where the relevant entity or trust is liquidated or is no longer in existence). This requirement shall also apply to any person referred to in regulation 5(1) acting in a professional capacity in relation to any such information or records that he holds in the carrying on of his business.