The Business and Intellectual Property Authority (BIPA) says it is temporarily waiving penalties and sanctions for businesses not yet compliant with its Beneficial Ownership regulations.
According to BIPA, businesses that have not met the Beneficial Ownership requirements will not incur further penalties until 31 August. During this period, BIPA will review its sanctions and penalty enforcement mechanisms.
“This interim pause will allow BIPA to revisit the modalities of its sanctions and penalty enforcement mechanisms relevant to such non-compliant business entities. BIPA will make an announcement on the way forward by 31 August,” BIPA said.
The authority said businesses with existing penalty payment plans should stop making payments until it provides further instructions.
“Business entities that have not complied with the BO requirements yet should, without delay, ensure that they complete the BO declaration and submit it to BIPA for processing.”
This comes as BIPA last month announced that more than 165,000 Namibian companies could lose their registration due to non-compliance with new ownership disclosure rules and that businesses that miss the deadline for submitting beneficial ownership declarations will face serious consequences.
The businesses faced suspension, a N$3,750 fine, and a daily penalty of N$75. If they did not correct the issue within seven days, BIPA would take further action. After six months of non-compliance, the business will be deregistered, effectively closing it down.
BIPA introduced regulations in 2023 requiring businesses to identify their true owners, information which it said is essential for preventing financial crimes and ensuring transparency.
