Colombia discussing beneficial ownership legislation

The Colombian Congress recently issued for consultation Draft Bill 341/20 (Proyecto de Ley 341/20) with the aim to promote legality, reinforce transparency and tackle corruption through the delivery and the update of key business information to the government.

The Draft Bill follows international recommendations set out by The Financial Action Task Force (FATF), and proposes the creation of a beneficial ownership register (Registro Único de Beneficiarios Finales “RUB”) managed by the Dirección de Impuestos y Aduanas Nacionales (DIAN), that will guarantee access to high-level entities.

Specifically, the beneficial ownership section of the Bill recognizes as beneficial owner (BO) the natural person holding 5% or more of ownership or voting powers, as well as a 5% or more of the assets, profits or benefits, and will regard legal persons with residence in Colombia (including foreign companies with subsidiaries in the country), trusts and non-profits.

The Draft has now been assigned to the First Commission of the Senate, but is still pending debate by the Commission and will need to pass through the Colombian president to become law or be vetoed.