CORPORATIONS OBLIGED TO DISCLOSE THEIR BENEFICIAL OWNERS

On the 5th March 2018, President Joko Widodo issued new regulations concerning beneficial ownership of corporations. The Presidential Regulation Number 13 of 2018 concerns Implementation of Principles of Recognizing Beneficial Ownership in the Event of the Prevention and Eradication of Money Laundering and Criminal Acts of Terrorism Financing is aimed at greater financial transparency and piercing the corporate veil. This Presidential Regulation (Perpres) is the implementation of the Automatic Exchange of Information (AEoI) program for tax purposes and obliges every corporation to declare the identity of their owners.

Currently, there is no regulation governing this issue and it was necessary to create a regulation regarding the beneficial ownership of a corporation. The purpose of this regulation is to prevent corporations, whether directly or indirectly, from being used by criminals to perpetrate acts of money laundering and financing terrorism through their beneficial ownership of companies.

-TWK-