Single Registry of Final Beneficiaries in Panama: Everything You Need to Know

The Single Registry of Final Beneficiaries (RUBF) is a centralized tool created by Panamanian legislation to identify the final beneficiaries of legal entities registered in the country. This registry has as its main purpose ensure transparency and to comply with international regulations to prevent illegal activities, such as money laundering and the financing of terrorism.

This system not only strengthens the regulatory framework in Panama, but it also improves the country's reputation before the international community, allowing for more rigorous oversight and, in turn, facilitating cooperation with other jurisdictions.

In short, the RUBF requires companies to:

• Declare who actually controls companies and legal entities.
• Keep information up to date in a format accessible to competent authorities.
• Comply with strict penalties in case of non-compliance.

The concept of 'final beneficiary' is key within the context of Bill 169. According to this regulation, the final beneficiary is the natural person who, directly or indirectly:

• It owns or controls at least 25% of the shares or voting rights of the legal entity.
• Exercise significant control over corporate decision-making

It should be noted that, if a natural person who meets the above criteria is not identified, the final beneficiary will be the legal figure with the highest hierarchy within the company structure.

This approach seeks to eliminate anonymity within companies and combat opaque practices that can facilitate financial crimes.

A central axis in complying with RUBF regulations lies in the so-called Resident Agents. These are legally authorized professionals or firms that act as intermediaries between authorities and legal entities. Your responsibilities include:

• Record accurate information about final beneficiaries in the system.
• Ensure that the data is constantly updated.
• Respond to any non-compliance related to the RUBF.

In addition, it introduces the Unique Registration Code (CUR), which is an identifier assigned to each registered legal entity. This code serves as a reference for authorities and ensures efficient traceability of recorded information.

One of the most sensitive aspects of the RUBF is the obligation to keep information up to date. Legal entities are subject to updating the data of their final beneficiaries when:

• There is a change in the shareholder structure.
• Voting or control rights are modified.
• Any circumstance that alters who qualifies as the final beneficiary occurs.

In the event of non-compliance, both resident agents and legal entities can face severe penalties, ranging from significant financial fines to the dissolution of the entity.

The Office of Supervision and Regulation of Non-Financial Subjects is responsible for ensuring compliance with these regulations and applying the corresponding sanctions.

Complying with the Single Registry of Final Beneficiaries may seem like a complex task, but with the right advice, you can stay in line with the legislation without complications. Here are some key steps:

1. Clearly identify the final beneficiaries of your company following established legal criteria.
2. Appoint a trusted resident agent who complies with current regulations in Panama.
3. Make sure you register all the necessary data within the stipulated deadline.
4. Develop an internal system to regularly monitor and update information about your corporate structure.

At Limitless Legal, we offer specialized services to manage the entire RUBF process, ensuring that your company complies with each of the regulatory requirements in Panama.