In Colombia, the obligation to register ultimate beneficial owners in the Unique Registry of Beneficial Owners (RUB, Registro Único de Beneficiarios Finales) has become crucial in the corporate and financial sectors. This requirement, designed to promote transparency and prevent illicit activities such as money laundering and terrorist financing, applies to all legal entities in the country.

Pursuant to Colombian regulations, ultimate beneficial owners are natural persons who ultimately own, control, or exert significant influence over a legal entity. This definition aims to reveal the true ownership and control structure behind entities, thereby promoting greater transparency and market confidence.

Entities must gather detailed information about their ultimate beneficial owners, including names, nationality, address, percentage of ownership, and how they exercise control. This registry must be accurate and regularly updated to comply with current regulations.

The initial registration must be done within 2 months following the Unique Taxpayer Registration (RUT, Registro Único Tributario) of the entity or following registration in the Registry of Non-Incorporated Legal Entities.

If you have made any changes to the structure of ultimate beneficiaries, please note that reporting deadlines vary depending on the date of the modification. For example:

The Colombian authority may impose penalties for for failure to register, late registration or submission of incorrect or incomplete information in the RUB.

Failure to register in the RUB or late registration before commencing activities results in the closure of the establishment, office, or headquarters for one day per month or fraction thereof that registration is delayed. If no physical establishment exists, a fine of 1 UVT per day of delay in registration applies (some USD 12 in 2024 values).

If the DIAN audits and finds incorrect or incomplete information in the Unique Beneficial Owners Registry (RUB), penalties amount to 100 Tax Value Units (UVT) (some USD 1,177 in 2024 values). Additionally, if the DIAN requests further information regarding the data submitted in the RUB and this information is not provided or is submitted incorrectly, additional penalties may apply.

It is important to note that penalties prescribed for RUB are strict and narrowly interpreted, applying strictly when registration is not completed before activities commence and when such registration is mandatory, and activities have commenced by the mandatory date of July 31, 2023.

Don’t let your business suffer due to non-compliance.

Contact us for more information and personalized advice at info@crlws.com and sconcha@crlws.com