COMPANIES(AMENDMENT)ACT2023
Thisbookletwillhighlightthe amendmentstotheCompanies Actandassistyouwithmaintaining compliancewiththeCompanies
OfficeofJamaica
The Companies (Amendment) Act will help to ensure Jamaica's continued participation in the international financial and trade markets Jamaica's compliance with international standards indicates to the world that it is committed to transparency and accountability. It also provides exposure for the island's MSME Sector toaccess global markets and financial opportunities.
TheCompanies(Amendment)Act2023waspassedonMarch31,2023. ThisfocusesonBeneficialOwnershipwiththeobjectiveofstrengthening Jamaica’santi-moneylaundering,counter-terrorism,andproliferation ofarmsfinancingeffortsasitrelatestolegalpersons.
Theamendments,amongotherthings,enhance Jamaica’s transparencyframeworkbygivingadditionalpowerstotheRegistrarof Companies;andimposingontheRegistraranobligationtomaintaina Registerof Shareholders/MembersandBeneficialOwners.
TheCompaniesAct,throughtheCompaniesAmendmentAct2017, requiresbeneficialownershipinformationfromcompanieslimitedby shares.Inreviewingthisrequirement,theFinancialActionTaskForce (FATF)determinedthatalltypesofcompaniesneededtoprovide beneficialownershipinformationandthatthebeneficialownership regimeattheCompaniesOfficeofJamaica(COJ)neededtobemore extensive.Assuch,theCOJinpartnershipwithlocalandinternational stakeholdersembarkedonaprojecttorevisethecurrent beneficialownershiprequirementsintheActandtoaddfurtherprovisions toensurethatthebeneficialownershipregimemeetsinternational standardssetbytheFATF.
Theseamendmentsshouldensuregreatertransparencyincorporate governanceandreducetheriskoflegalpersonssuchascompanies beingabusedandusedformoneylaunderingandterrorismfinancing. TheseamendmentswerepassedintolawbytheCompaniesAmendment Act2023.
theindividualwhoexercises,whether directlyorindirectly,ultimateeffective controlandultimateownershipofa company,or
theindividualwhoexercises,whether directlyorindirectly,eitherultimate ownershiporultimateeffectivecontrol,or
theindividualexercisingcontrolor ownershipinanyofthewayspreviously statedoveracompany,bodyofpersons, trustorotherlegalarrangement,who ownstwenty-fivepercentormoreofa company;or
anindividualwhoisanofficerofthe company whoexercisesultimate effectivecontrolofthemanagementof thecompany;
ThelegalowneristhepersonnamedintheRegisterofMembersasa shareholder.Thelegalownerdoesnothavetobethesamepersonasthe beneficialowner.
AccesstoBeneficial OwnershipInformation
Theauthoritiesthatmay requestinformationfrom theBeneficialOwnership Registryare:
(a)competentauthorities
(b)anauthorityofaforeign stateorcountrycarryingout functionsanalogoustothe functionsofacompetent authority;
(c)thedesignatedauthority;
(d)aconstablenotbelowthe rankofSergeant;
(e)theCommissionerof Customs;
(f)theCommissionerGeneral;
(g)theDirectorofPublic Prosecutions.
Allcompanies,profitandnon-profit,willberequiredto statethebeneficialownerofthecompany
TheBeneficialOwnershipthresholdwasloweredfrom 50%to25%forcompanieswithshares
NewpowersoftheRegistrar/COJtoverifybeneficial ownershipinformationthroughinvestigationand inspection
TheCOJwillnolongerchargetheAnnualReturn penaltyunderSection121 Onlylatefeeswillbe collected However,afineofupto$5,000,000maybe applicabletodelinquentcompanies
Beneficialownershipinformationwillnotbepublicly accessible.Informationwillonlybeaccessiblebylocal andforeigncompetentauthorities,lawenforcement, andregulatorybodies,uponwrittenrequesttotheCOJ. Financialinstitutionsanddesignatednon-financial institutionsmayalsomakeanapplicationtotheCOJto viewbeneficialownershipinformation.
Companiesarerequiredtokeepbeneficialownership informationafterclosure.
Increaseincurrentsanctionsandintroductionofnew sanctions.
Beneficialownershipinformationmustbeup-to-date, adequate,andaccurate.
Thebeneficialownershipinformationcollectedwillbe extendedtocollectadditionalpiecesofinformation.For example,name,nationality,occupation,etc.
COMPANIES (AMENDMENT) ACT2023
TheAML&CFTDepartmentistheinvestigativearm oftheorganization Thedepartmentis responsibleforensuringthattheinformation receivedbytheCOJinrelationtothepersons exercisingultimateownershipandcontrolof companiesareaccurateandupto datebyadequatelyandactivelyverifying, monitoringandimplementingothermeasuresto ensuretheconsistencyandreliabilityofthe RegisterofMembersandBeneficialOwners.
Duties:
Conductingdetailed examinationand verificationofbeneficial ownershipand membershipinformation
Processingofall incominginvestigative requestsfromexternal stakeholders/competent authorities.
Preparingandissuing ofRegistryNotices& Reminders.
Processingofall incominginvestigative requestsfromexternal stakeholders/competent authorities
Notifyingcompaniesof registrydiscrepanciesin beneficialownership andmembership information.
Conductingfieldvisits toauditcompany registers.
P O W E R S O F T H E R E G I S T R A R
PowertoinspecttheRegisterofMembersofacompanywherenoticeis issuedtothecompany.
Obligationtonotifythecompany7daysbeforeintendedinspectiondateof theinspection.
Powertoapplytothecourtforanorderthatwillcompelanimmediate inspectionwhereinspectionrefusedbycompany.
Obligationtonotifythecompanyofanyinaccurate,inadequate, orout-of-dateinformationintheregisterofmembersafteraninspectionand informthecompanyoftheconsequencesof non-compliance.
Obligationtoissuecertificateofinspectionaftercompletingtheinspection.
Powertorequestinformationfromthecompany,anypublicentity,orany foreignentitystate(thathassimilarfunctionstoapublicentityinJamaica) toverifybeneficialownershipinformation.
Powertoverifytheaccuracyofbeneficialownershipinformationsubmitted onabeneficialownershipreturn
Powertorequest(inwriting)informationtosubstantiatetheinformationina beneficialownershipreturn
Obligationtokeepanaccurate,adequate,andup-to-dateRegisterof BeneficialOwners
Obligationtoensureproperstandardsofconductamongitsemployees whenmaintainingaccurate,adequateandup-to-dateBeneficialOwnership Register
Powertoexaminetherecordsandproceduresofacompanytoensuresaid companyiscompliantwiththebeneficialownershiprequirementsintheAct Obligationtosendareportofitsexaminationofthecompanywithin90days oftheexaminationandmakeanyrecommendationsnecessarytoensure compliance
Powertoenterregisteredofficeaddressofthecompanytoperform inspectionbetweenthehoursof8AMand5PM
Powertoperforminspectionwithanyotherpersonorentityasthe CompaniesOfficeofJamaicaseesfit
PowerofCOJtoposequestionstothecompany,itsofficers,employeesor agentsaboutitsbeneficialownershipinformation
CollectandmaintainBeneficialOwnershipInformation
CollectingAdditionalBeneficialOwnershipandmembershipinformation: Names,Nationalities,Addresses,Occupations,DatesofBirth,TRNandPEPStatus.)Thesemustbe providedbyallcompaniesatincorporation.Afterincorporation,companieswillalsobeunderan ongoingobligationtomaintainandensurethatbeneficialownershipinformationheldisadequate, accurateandupdated.
Obligationtotimelynotifyregistrarofchanges
ProvisionsarebeingproposedthatwillrequirethatcompaniesnotifytheRegistrarofanychanges totheinformationontheRegisterofMembersandBeneficialOwnerswithinfourteen(14)daysof anychanges.Thesechangesinclude,changeinname,address,shareholdingandoccupation. SeeForms27A,27b,orFormC.
ObligationtoretainBeneficialOwnershipInformation
Companieswillberequiredkeeparecordofthebeneficialownershipinformationandthe measurestakentoconfirmtheaccuracyofbeneficialownershipinformationforaminimumof sevenyearsfromthedaythelastbusinesstransactionisconducted
ObligationtokeepmembershipandbeneficialownershipinformationintheRegisterofMembers.
ObligationtonotifytheCOJoflocationofRegisterofMembers(includingwherethereisachange intheaddress)andchangestoinformationkeptthereinwithin14daysfromthedatethechange occurs.
Obligationtoobtainbeneficialownershipandmemberhsipinformationbeforeenteringan allotteeasamemberintheRegisterofMembers.
Obligationoncompanieswith50+memberstokeepindexofmembersandbeneficialowners. ObligationtonotifytheCOJofanychangestobeneficialownershipinformationwithin14days fromthedatethechangeoccurs.
ObligationtoansweranyquestionposedbytheCOJregardingitsbeneficialownership information,inwritinginthemannerandtimeframespecifiedbytheCOJ.
Obligationonallformerandcurrentofficers,employees,auditorsandagentsofthecompanyto permittheCOJ'saccesstothepropertytocarryoutinspectionandexamination.
Obligationonthecompanytorecordmeasuresandmethodsusedfor verifyingbeneficialownershipinformationandtorecordsubstantiating documentsusedtoverifybeneficialownershipinformation
Obligationonallformerandcurrentofficers,employees,auditorsand agentsofthecompanygivetheCOJdocumentsrelatingtotheRegisterof Membersand/orbeneficialownership
Obligationofcompanytoentertheparticularsofbeneficialownerswhere companyreceivesnoticeofanytrust,whetherexpress,implied,resultingor constructivethataffectsthemembershipofthecompany
Obligationtorectifyanyinaccurate,inadequateoroutofdateinformationin theregisterofmembers,uponnoticeofsamefromtheCOJafteran inspection
Obligationtokeepdocumentsofthecompanyfor7yearsafterthe companyiswounduporstruckofftheregister
Obligationtokeepregisterofdirectorsinadditiontoregisterof members.
Overseascompaniesareprohibitedfromhavingandappointing nomineedirectors.
Itisnowmandatoryforoverseascompaniestoprovidebeneficial ownershipinformation.Theword"any"hasbeendeleted.
Overseascompaniesaretosubmitacopyoftheircertificateof incorporationwithabeneficialownershipreturnform.
WithchangestoBeneficialOwnership,allIncorporationFormsforCompanieswillbe amendedalongwithformsthatprovideupdatestocompanyparticularstoincludethe additionalinformationonBeneficialOwners TheFiledbyPagesoftheFormswillalsoexpand asmoreinformationwillbecollected.5A-Notificationtoregistrarofchangeswith identification
AmendedForms NewForms
TheArticlesofIncorporation(Form1A,1B,1C,1D)
AllAnnualReturnForms(Forms19A,Form19Band19E)
FormsthatDealwiththeAllotmentofshares(Form9)
Forms27A&27B-Changestomembersandshareholderinformation
Forms31A&31B-Registrationofoverseascompanieswithsharesand withoutshares
Theseformswereonceoneform,Form31
Form5A-Notificationtoregistrarofchangeswithidentification
BeneficialOwnershipReturn-FormA
BeneficialOwnershipReturn-FormB
Companieswillnowberequiredtofile B fi i lO nershipinformationwhen:
corporation alReturn SharesAllocation
rOverseasCompanies
sforCompaniesWhenfiling nerchangesforcompanies, formsarerequired:
gesorrenewalofidentification
pdatemembersandBeneficialOwnerfor CompanieswithShareCapital
Form27B:ToupdatemembersandBeneficialOwnerfor CompanieswithoutShareCapital
BeneficialOwnershipReturn-FormC
Penaltyfeesforfailuretomaintainadequate,accurateandup-to-date BeneficialOwnershipandmembershipinformation.
Increaseinfinesandsentencingguidelinesforofficersandcompaniesthat arenotcompliantwithBeneficialOwnershipprovisions.
PenaltyfeesforfailuretocorrectBeneficialOwnershipinformationandmembership informationonacompany’srecordsattheCompaniesOfficeofJamaica.
CompanyName:__________________________________
CompanyNumber:_________________________________
WriteinBLOCKLETTERSanddatetheformbeforesubmission
Ensurethatallrequiredsignaturesareappliedtotheformintheappropriate sections
Ensurethattheword'Limited'isalwayswrittenaspartofyourcompany name
Foryourrecordsandnextfiling,youmayrequestanuncertifiedcopyofyour lastfiling
Ensurethatnames,dates,andaddressesareconsistentthroughouttheform andwithrecordsattheCompaniesOffice.
GoOnline...SkiptheLine
Ouronlineplatformfacilitatesthefollowingservices
RegistrationofcompanyandBusinessName
CompanyIncorporationDate:__________________________ T H I N G S T O N O T E
RequestLettersofGoodStanding,StatusLetters,andCertifiedCopies ViewandPrintdocuments
COMPANIES (AMENDMENT) ACT2023
