Original title: Xinhua Decoding | How can enterprises improve mutual trust? This information needs to be filed

Xinhua News Agency, Beijing, April 30

Xinhua News Agency reporter Wu Yu

Inadequate transparency of enterprises is likely to lead to difficulties for financial institutions and investors to establish trust with enterprises. On the 30th, the Measures for the Management of Beneficial Owner Information issued by the People's Bank of China in conjunction with the State Administration of Market Supervision and Administration of the People's Republic of China was officially announced, making specific provisions on the filing and management of beneficial owner information, and will be implemented from November 1, 2024.

Which enterprises need to be registered? What enterprises will benefit from this? Let's see what the management measures are worth.

Highlight 1: Enhance information symmetry and mutual trust, and optimize business environment

What is a "beneficial owner"? The management measures announced this time clearly indicate that the beneficial owner refers to the natural person who ultimately owns or actually controls the filing subject, or enjoys the final benefits of the filing subject. The management measures also stipulate which subjects should file beneficial owner information, and clarify the identification criteria of beneficial owners.

"At present, China has disclosed the main equity structure information of enterprises to the public in the enterprise credit information publicity system, but the equity structure information is not enough to reflect the control and beneficial relationship of enterprises." Yuan Zhijie, a professor at the School of Law of Beijing Normal University, introduced the construction of the beneficial owner information filing system, It can more clearly reflect the ownership structure, final control and benefits of companies and other entities, enhance information symmetry and mutual trust between business entities, and improve transaction security and efficiency.

At present, the centralized filing of beneficial owners has become an international standard requirement and a common international practice, as well as a necessary measure to manage and prevent market risks.

The reporter learned that the World Bank has listed the registration and filing system of beneficial owners as an important indicator of business environment assessment, and the Financial Action Task Force (FATF), the global anti money laundering standard maker, also listed this as an important indicator of international anti money laundering assessment. At present, major economies in the world have established the system.

Highlight 2: launch the "promise exemption" to facilitate the filing subject

According to the administrative measures, companies, partnerships and branches of foreign companies are all "filing subjects". Business entities registered before November 1, 2024 can supplement and submit beneficial owner information before November 1, 2025; The newly registered business entity after November 1, 2024 shall fill in the beneficial owner information when going through the establishment registration in the relevant registration system.

The management measures also stipulate that individual businesses do not need to record the information of beneficial owners. Non corporate enterprise legal persons, sole proprietorship enterprises, farmers' professional cooperatives (cooperatives) and their branches, as well as domestic companies and partnerships' branches, do not need to file beneficial owners for the time being.

In order to simplify the filling and reporting process of small, medium-sized and micro enterprises, the management measures stipulate the simplified measures of "promise exemption". According to the relevant person of the People's Bank of China, qualified small and medium-sized enterprises can read the letter of commitment in the system and check for confirmation, thus avoiding further filling in the beneficial owner information.

"For us, it is no stranger to fill in the information of the beneficial owner." Gao Yuejing, the chairman of Xi'an Lanxiao Technology New Materials Co., Ltd., told reporters that the bank would also register and check the information of the beneficial owner when the enterprise opened an account, lent money and other businesses in the bank. Especially when applying for bank loans, the bank will take the verification of the beneficial owner as an important consideration in the background investigation during the process of credit extension and lending.

Highlight 3: Information is not open to the public, limiting the conditions for information query

For information registration, some enterprises worry about data privacy protection. In this regard, the management measures clearly limit the conditions for the use of filing information query, so as to better standardize the information related to the beneficial owners of companies and other entities filing.

The reporter learned that the international information management policies for beneficial owners can be roughly divided into two categories. One is to treat the information of beneficial owners as public information for public inquiry by the whole society; The other kind regards it as non-public information, which can only be inquired by government departments and anti money laundering institutions when performing their statutory duties.

China takes a relatively cautious attitude towards the information and data of the beneficial owner obtained through the filing system, clearly regards the information of the beneficial owner as non-public information, and emphasizes the confidentiality of the information.

Lu Nan, an associate professor of the Law School of Tsinghua University, said that China's information management policy fully balances the relationship between privacy protection and market transparency. The recorded information of the beneficial owner is not open to the public. The relevant national authorities and financial institutions can only obtain or inquire information according to law when performing their legal duties, and must keep it strictly confidential.

Focus 4: fight against crime and improve the quality and efficiency of supervision

In the opinion of experts, the introduction of management measures is of great significance in combating crime and corruption.

Previously, "Tomorrow Department", Liaoning Zhongwang Group, etc., through the circular registration of a large number of shell companies, covered up the source of funds and the actual control relationship, wantonly engaged in illegal financial activities, seriously disrupting the financial order and threatening financial security. Relevant people of the People's Bank of China said that when identifying the beneficial owners, they should "penetrate layer by layer", which is helpful to prevent violations such as shell companies, false capital injection and nested shareholding from the source.

"This is good for enterprises with high transparency." Wang Xin, a professor at Peking University School of Law, said that the clear and clear structure of market equity and control will help to ensure that legitimate and true business entities obtain more resources, enjoy the policy dividend of industrial development, build a fair, just and open business environment, and boost market confidence.

In recent years, telecommunications network fraud crimes are very rampant, among which many criminals indirectly hold shares in companies by registering shell companies and other means to cover up and transfer illegal and criminal gains.

In the opinion of experts, the introduction of the new regulations has positive significance in curbing the crime of telecom network fraud and ensuring the safety of people's livelihood. The beneficial owner information filing system can effectively reduce the abuse of false information and curb the use of false enterprises or shell companies for fraud.