Law N° 19.484 was enacted on January 5, 2017 (the “Law”) to establish certain norms in accordance with international standards related to: international fiscal transparency, tax information Exchange, and prevention of asset laundering. The Executive Branch is working on its regulation, which is expected to be issued soon.
Reporting Requirements. Corporate Ownership Identification. Under the Law, final beneficiaries of corporate shares must be identified and registered with the Central Bank of Uruguay (“BCU”). The final beneficiary is considered the natural person who directly or indirectly holds at least 15% of the capital or exercises final control over the company.
Regulated Entities. The entities subject to the new reporting requirement are: entities that are Uruguayan tax residents, non-resident entities that act through permanent establishments in Uruguay, or are holders of assets located in Uruguayan territory amounting to more than 2,500,000 UI (approximately USD 300,000); and entities issuing stocks or nominative shares in Uruguay.
Excluded Entities. The following entities are not subject to the new reporting requirements: personal or agrarian societies in which the totality of shares belong to natural persons, provided that they are the final beneficiaries, de facto corporations or civil societies integrated exclusively by natural persons, provided that they are the final beneficiaries, entities whose equity securities are listed on national, well-known international or public offer stock exchanges and investment funds and duly constituted trusts, joint tenancies and conjugal partnerships.
Information Access. The state agencies that have access to the reported information are: the Tax General Directorate (DGI), the National Secretariat for Combating Money Laundering and the Financing of Terrorism (SENACLAFT), the Information and Financial Analysis Unit, the Judiciary in criminal and food matters, and the Transparency and Public Ethics Board.
On February 13, 2017, Uruguay issued Decree 43/017, which includes new obligations for persons obliged to report unusual or suspicious transactions, along with the applicable know-your-client requirements.
Record maintenance. In addition to maintaining the documentation obtained in the know-your-client process for the legally established term, the obliged persons must make this information available to SENACLAFT and UIAF upon request. This documentation must be maintained at the domicile where the obliged person conducts its business.
Suspicious transaction report. Any refusal to provide the information required to comply with the know-your-client process gives rise to the obligation of the obliged person to report same to the UIAF as suspicious activity.