Brela directs banks to provide beneficial ownership details

 

Brela’s acting director general, Mr. Isdor Nkindi. PHOTO | FILE

By Gadiosa Lamtey

Summary

·         Statistics show many registered companies, including financial institutions, have not yet submitted information about beneficial owners to Brela

Dar es Salaam. The Business Registration and Licensing Agency (Brela) has urged banks and financial institutions to collect and provide beneficial owners’ information to prevent tax evasion, money laundering and acts associated with terrorism financing.

A beneficial owner is a person, who directly or indirectly owns or exercises substantial control over an entity or an arrangement;

According to Brela, the requirement was in line with the amendments to the Business Names Act, Chapter 213 – as approved through the Finance Act, 2022.

It aims to compel, among other things, the owners of business partnerships to submit beneficial owners’ information to the registrar of business names.

Brela’s acting director general, Mr Isdor Nkindi said during a workshop for banking and financial institutions yesterday that it was important for people to understand that the amendments require all registered companies in the country to submit information about the people involved in the ownership.

“This applies even to those that are not directly listed in the company's memorandum of association but benefit from the firm’s operations,” he said.

He said going against the law or submitting incorrect information would attract legal action.

“Since the concept is new to many, we are currently encouraging people to implement the law voluntarily and continue to provide education to the relevant groups,” he said, noting that time will come when the authorities responsible for the implementation of the law will start taking action.

Mr Nkindi said that they have seen the need to provide such education to banks since they are also involved in the storage of information of people and companies.

Opening the workshop, Ilala District Commissioner, Mr Edward Mpogolo said statistics show that until now some companies have not yet submitted information about the beneficial owners.

He said it was important for the information to be submitted to Brela to prevent some people who have been misusing the companies by engaging in tax evasion and money laundering.

“The intention of the government is to make this law is to collaborate with financial institutions to reveal all that is happening behind the scenes, with this law all company information will now be visible and there will be no fraud,” said Mpogolo.

The chief executive officer for Tanzania Bankers Association, Ms Tuse Joune said it was their responsibility as banking institutions to legally implement the law to help make known the owners of the relevant company and thus help control financial crimes including money laundering.