PAK SEC proposed amending Companies regulations, 2024 to establish centralized corporate ultimate beneficial ownership (UBO) registry, where companies would be required to submit UBO data, already obtained from shareholders, to the PAK SEC.
Aims to ensure maintenance of accurate, up-to-date and comprehensive UBO data.
Published concept note which is titled Setting up of corporate ultimate beneficial ownership registry through amendments to the Companies regulations, 2024.
Outline of Amendments
National action plan 2023 mandates creation of separate UBO registry at PAK SEC to ensure compliance with FATF's revised recommendation 24; initiative brings reg framework in line with international best practices without added compliance burden.
Companies required to submit UBO information already obtained from shareholders holding 25% or more shares to PAK SEC through eZfile portal; for indirect holdings, notices to be issued by companies to all members, exception for listed companies.
These will only issue notice to members holding at least 5% of shares or voting rights.
Threshold for companies to report UBO data to PAK SEC remains 25% as provided under s123A of Companies act, 2017; proposed legal changes include insertion of enabling clause to establish digital UBO registry, amendments to forms 1, 2, and 19.
Tech changes include upgrading eZfile portal to facilitate efficient data submission.
Effectiveness
The consultation period is open until Apr. 29, 2025.
