Cabinet Resolution No. 132 of 2023 Regarding the administrative penalties resulting from violators of the provisions of Council of Ministers Resolution No. 109 of 2023 regarding regulating the procedures of the actual beneficiary.
In response to evolving regulatory demands, this decision has been crafted to govern legal entities operating within our jurisdiction, extending its reach to non-financial free zones. The focus lies on ensuring compliance with Cabinet Resolution No. 109 of 2023, without prejudice to any penalties or procedures outlined in the decree law and other pertinent legislation. At the forefront of enforcement is the Registrar (meaning the regulatory body tasked with overseeing the registration of trade names for various types of establishments within the country, inclusive of the licensing authority) vested with the authority to impose administrative penalties upon entities found in violation (regarding the actual beneficiary, meaning the individual to whom final ownership is transferred or who exercises control through indirect means, as well as the individual on whose behalf transactions are conducted or who exercises ultimate control over a legal entity. This determination aligns with the provisions outlined in Article 5 of Cabinet Resolution No. 109 of 2023).
Accordingly, the Council of Ministers holds responsibility for refining the fines stipulated in this decision, allowing for amendments, additions, deletions, or modifications as deemed necessary. Additionally, the Council plays a crucial role in determining the distribution of sanctions revenues between federal and local governments, a process intricately tied to the proposal of the Minister of Finance and coordination with the Registrar.
This decision underscores a collaborative approach toward effective governance, as it strives to balance regulatory enforcement with fairness. Fines, collected through channels specified by the Ministry of Finance, bear an additional feature acknowledging the temporal nuances until collection is complete, ensuring a robust and pragmatic implementation of the regulatory measures.
*Administrative penalties:
• Without prejudice to any penalty or procedure stipulated by the Decree-Law and other relevant legislation, the Registrar has the authority to impose administrative penalties on violators of the provisions outlined in Cabinet Resolution No. 109 of 2023. This authority extends to the violations and penalties detailed in the table below.
• Furthermore, in addition to the monetary penalty levied for violations committed for the third time, as specified in the attached table, the Registrar is empowered to suspend the commercial license and close the commercial establishment of the offending legal entity, This suspension is contingent upon the payment of the imposed fine and rectification of the violation by fulfilling the necessary requirements related to the violation.
*Concerning the Amendment of fines: The Council of Ministers is responsible for making amendments to the fines outlined in this decision, including additions, deletions, or modifications.
*Concerning the distribution of sanctions revenues between the federal and local governments: The Council of Ministers will issue a decision determining the proportion of sharing the proceeds from administrative penalties between the federal and local governments. This determination will be based on the proposal of the Minister of Finance and after coordination with the Minister and the Registrar.
*Concerning the Federal and Local government share of penalty revenues: The Council of Ministers will issue a decision determining the percentages for sharing the proceeds of administrative penalties between the federal and local governments. This decision will be based on the proposal of the Minister of Finance and after coordination with the Minister and the Registrar.
*The fines will be collected through the means specified by the Ministry of Finance. Until fines are collected, a part of a day will be considered a full day, and a part of a month will be considered a full month.
The table attached to Resolution No. 132 of 2023 regarding the administrative penalties resulting from violators of the provisions of Council of Ministers Resolution No. 109 of 2023 regarding regulating the procedures of the actual beneficial owner:
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