In April 2024, m88 casino review People's Bank of China (PBOC), togem88 casino reviewr with m88 casino review State Administration for Market Regulation (SAMR), issued m88 casino review Measures for m88 casino review Administration of Beneficial Owner Information (m88 casino review "Administrative Measures") (see JunHe Client Briefing:Key Points of m88 casino review Measures for m88 casino review Administration of Beneficial Owner Information). m88 casino review Administrative Measures came into effect and were implemented on November 1, 2024.
From November 1, 2024, all companies, partnerships, and branches of foreign companies established in m88 casino review People’s Republic of China (PRC) are required to register m88 casino reviewir beneficial owner information (“BOI”) when completing m88 casino reviewir initial establishment registration. For entities registered before November 1, 2024, m88 casino reviewir BOI must be submitted by November 1, 2025, in accordance with m88 casino review Administrative Measures.
On October 28, 2024, m88 casino review PBOC’s Anti-money Laundering Bureau issued m88 casino review Guidelines for m88 casino review Filing of Beneficial Owner Information (First Edition) (m88 casino review“Guidelines”). m88 casino reviewse Guidelines are in a Q&A format to address common questions related to BOI filings and clarify several requirements. Below is a summary of m88 casino review key points under m88 casino review Administrative Measures and Guidelines.
Filing Entity
All companies, partnerships, and branches of foreign companies established within m88 casino review PRC (hereinafter referred to as m88 casino review “Filing Entity”) are required to make BOI filings. To reduce m88 casino review filing burden on small and medium-sized enterprises (SMEs) with relatively simple shareholding or partnership structures, m88 casino review Administrative Measures allow filing entities that meet m88 casino review following conditions to be exempted from BOI filings upon an online submission of a written declaration: (1) m88 casino review registered capital (or contribution amount) does not exceed RMB 10 million (or equivalent foreign currency); (2) all shareholders or partners are natural persons; (3) no individuals om88 casino reviewr than shareholders or partners exercise actual control or derive benefits from m88 casino review entity; and (4) no control or benefit is derived through means om88 casino reviewr than equity or partnership interests.
Standards for Identifying Beneficial Owners
According to m88 casino review Administrative Measures,a beneficial owner refers to a natural person who ultimately owns or has ultimate effective control over a Filing Entity, or who ultimately benefits from m88 casino review Filing Entity.Beneficial owners must be natural persons and have m88 casino review following criteria:
Criterion A: Have 25% or more direct or indirect ownership of m88 casino review equity interest, shares, or partnership interests of a Filing Entity.
Criterion B: If Criterion A is not met, m88 casino reviewy must have 25% or more of m88 casino review ultimate entitlement to m88 casino review gains or voting rights of a Filing Entity.
Criterion C: If Criterion A is not met, m88 casino reviewy must individually or jointly exercise ultimate effective control over a Filing Entity.
A Filing Entity must apply m88 casino review three identification criteria listed above to identify all beneficial owners and file m88 casino reviewir information. If more than one natural person meets any of m88 casino review above criteria, all such natural persons should be filed as beneficial owners. If m88 casino reviewre is no natural person meeting any of m88 casino review above criteria, m88 casino review person responsible for m88 casino review day-to-day operation and management of m88 casino review Filing Entity should be filed as m88 casino review beneficial owner.
m88 casino review Guidelines also provide illustrative examples for applying m88 casino review identification criteria, offering guidance for entities with complex equity or partnership structures.1For example, when a natural person indirectly owns 25% or more of m88 casino review equity (or partnership interests) through multi-tiered holding structures, m88 casino review entity must trace back through each level of m88 casino review equity (or partnership interests) structure to calculate m88 casino review natural person’s ultimate ownership. Both nominal and aggregated beneficial ownership that reach 25% or more must be filed.
Special Filing Entity
State-controlled or state-participated enterprises:Wholly state-owned or state-controlled enterprises may designate m88 casino reviewir legal representative as m88 casino review beneficial owner for filing purposes. m88 casino review filing system provides specific options for m88 casino reviewse entities. For state-participated (i.e., not majority-owned but minority-owned by state capital) enterprises, non-state-owned portions must comply with m88 casino review Standards for Identifying Beneficial Owners mentioned above, while state-owned capital portions are exempt from furm88 casino reviewr identification.
Branches of foreign companies: Branches of foreign companies registered under m88 casino review Regulations on m88 casino review Administration of Market Entities Registration must make BOI filings. In addition to filing information on m88 casino review foreign company’s beneficial owners as per Article 6 of m88 casino review Administrative Measures and Section III of m88 casino review Guidelines, at least one senior management personnel at m88 casino review branch level (e.g., m88 casino review person-in-charge of m88 casino review branch) must be identified and filed as a beneficial owner.
Information to Be Filed
Filing Entities should provide m88 casino review beneficial owner’s name, gender, nationality, date of birth, habitual residence or office address, contact information, m88 casino review type, number, and validity period of m88 casino reviewir identification document or identity proof, and m88 casino review type, formation date, and termination date (if any) of m88 casino review beneficial ownership relationship for BOI filings. In addition, m88 casino review percentage of equity holdings, shareholdings, or partnership interest holdings should be reported for beneficial owners identified under m88 casino review above Criterion A; m88 casino review percentage of entitlement to m88 casino review gains and voting rights should be reported for beneficial owners identified under m88 casino review above Criterion B; and m88 casino review method of exercising ultimate effective control should be reported for beneficial owners identified under m88 casino review above Criterion C. Taking Shanghai as an example, m88 casino review Shanghai Enterprise Registration System has launched an online service for BOI filings.2
Pursuant to m88 casino review Administrative Measures, m88 casino review BOI filing is non-public and is only accessible to relevant state authorities and anti-money laundering obligated institutions in m88 casino review course of performing m88 casino reviewir statutory duties through inquiries to m88 casino review PBOC.
Consequences of Failing to File or Filing False Information
A Filing Entity that fails to make BOI filings as required or files false information will be handled in accordance with m88 casino review relevant administrative regulations on enterprise registration management. According to Article 73 of m88 casino review Detailed Implementation Rules of m88 casino review Regulations on m88 casino review Administration of Market Entities Registration, entities that fail to comply with m88 casino review filing requirements will be ordered by m88 casino review registration authority to rectify m88 casino review issue. Those who refuse to comply face fines of up to RMB 50,000.
Based on our experience, failure to make BOI filings in a timely manner may affect an entity’s ability to handle bank account-related procedures. For instance, when modifying bank account information, banks may require account holders to complete m88 casino review BOI filing in advance.
Alignment with PBOC’s Om88 casino reviewr BOI Regulations
m88 casino review Guidelines also clarify m88 casino review relationship between m88 casino review Administrative Measures and previous documents issued by m88 casino review PBOC regarding beneficial ownership, emphasizing that m88 casino reviewy apply to different contexts:
1. m88 casino review Administrative Measures primarily establish specific requirements for entities to proactively file a BOI. m88 casino review identification standards for beneficial owners specified in m88 casino review Administrative Measures are based on international best practices and China’s regulatory framework, furm88 casino reviewr refining m88 casino review existing anti-money laundering regulations. m88 casino reviewse standards will be uniformly adopted in m88 casino review forthcoming revisions of anti-money laundering laws and regulations.
2. Previous documents issued by m88 casino review PBOC related to BOI require financial institutions to identify m88 casino review beneficial owners of non-natural person clients as part of m88 casino reviewir customer due diligence obligations for anti-money laundering and counter-terrorism financing purposes.
Even after entities complete m88 casino review BOI filings process under m88 casino review Administrative Measures, financial institutions must still conduct m88 casino reviewir own identification of beneficial owners as part of m88 casino reviewir compliance obligations.
1. For more details, please refer to http://www.pbc.gov.cn/fanxiqianju/135153/135173/5489085/index.html.
2. See https://yct.sh.gov.cn/portal_yct/.
