Recent regulatory correspondence requires joint stock companies to provide the Companies Registration Department with updated information on shareholders holding not less than 10% of the company’s shares.

Key Update Highlights

• Companies must submit the names of shareholders owning 10% or more of company shares
• The requirement applies to joint stock companies
• The purpose is to support sectoral risk assessment updates
• The measure aims to mitigate risks related to:
  • Misuse of legal entities
  • Money laundering
  • Terrorist financing

Regulatory Objective

• Enhancing transparency of ownership structures
• Identifying beneficial owners
• Strengthening AML/CFT compliance frameworks

What Companies Should Do?

• Review current shareholding structure
• Identify shareholders meeting the 10% threshold
• Ensure accurate and up-to-date disclosure to the Companies Registration Department
• Align internal records with AML/CFT requirements

Why This Update Matters: Failure to maintain accurate ownership disclosures may expose companies to regulatory scrutiny, compliance risks, or penalties, particularly in the context of AML/CFT enforcement.