This announcement follows the Registrar’s recent non-compliance actions in March and April 2022 with respect to economic substance for the 2019 and 2020 financial periods. Proposed penalties for non-compliance for these periods ranged from $7,500 to $100,000 (per offending entity).
If a Bermuda entity receives a compliance review notification from the Registrar, Appleby’s experienced and dedicated regulatory team is ready to assist with any preparation requirements.
If a Bermuda entity is part of a compliance investigation, Appleby’s regulatory team has the expertise to provide guidance through any potential enforcement action by the Registrar.
Bermuda entities are reminded the filing deadline for those entities with a 31 December 2021 year-end is 30 June 2022.
There have been further changes and updates to the economic substance declaration form with Appleby advising clients on issues such as:
- Changes to beneficial ownership reporting for regulated entities, subsidiaries of listed companies and overseas permit companies
- Changes to Director information to be included in the submission
- The process for entities which earned no gross revenue in respect of their relevant activity
Appleby has an experienced, multi-disciplinary regulatory team which includes expert compliance professionals, as well as a team of lawyers across the corporate and dispute resolution practice areas. With expert advisors across a range of disciplines, we help clients navigate regulated environments throughout the lifecycle of their business.
Please contact a member of the team below if you have any questions concerning economic substance compliance, the Registrar’s recent notification and/or the risks of enforcement.