The Business and Intellectual Property Authority (BIPA) says over 165,000 Namibian businesses risk deregistration for failing to declare their beneficial owners.
BIPA introduced a regulation requiring companies to identify their true owners (beneficial owners) in 2023. This information is crucial for transparency and helps combat financial crimes like money laundering.
According to BIPA’s Executive for Marketing, Corporate Communications, and Client Management Services Ockert Jansen, people getting large annual payouts from a company, like N$1 million or more, could be considered beneficial owners because of the significant financial gain they receive.
He further clarified that even without direct financial gain, someone could still be considered a beneficial owner if they significantly influence the company’s business decisions through ongoing consultations and the company consistently acts on their advice.
“This highlights that beneficial ownership goes beyond just shareholders or directors. It encompasses anyone who meets the criteria of control, influence or substantial financial gain,” he said.
Jansen said the consequences of non-compliance are severe.
“Businesses that fail to submit a beneficial ownership declaration will be placed on an inactive list and face immediate financial penalties as well,” he said.
Non-compliant businesses face a one-time sanction of N$3,750 along with a daily penalty of N$75.
“After placing a non-compliant business on the inactive list, they are given a seven-day grace period to rectify the situation. BIPA then follows up with reminders through various channels like directives and SMS messages, but only for those with updated contact information. If compliance isn’t achieved within the grace period, BIPA implements sanctions,” he said.
He further explained that if they remain non-compliant for six months after being listed, BIPA will deregister them entirely. This essentially shuts down the business and can significantly impact its operations.
He also highlighted that complying with beneficial ownership declarations goes beyond avoiding penalties. Namibia’s recent “greylisted” status by the Financial Action Task Force is partly due to insufficient beneficial ownership information.
This status can negatively impact the country’s access to international loans, trade and investor confidence.
