This article is to give a brief outline on the new legislative requirement (with effective on 1 March, 2018) of keeping and maintaining Significant Controllers Register (SCR) of all Hong Kong companies at the company's registered office or any other place in Hong Kong (where NR2 is required to specific and file to registry) .
Background of Significant Controllers Register (SCR)
The mandatory requirement to keep SCR is to fulfil the Anit-Money Laundering and Counter-Terrorist Financing (Financial Institutions) (Amendment) Ordinance 2018 and Companies (Amendment) Ordinance 2018, such that all companies registered in Hong Kong is required to identify persons who have significant control over the company ("Significant Controllers"), then obtaining and maintaining up-to-date beneficial ownership information by way of keeping a Significant Controllers Register.
Therefore, although the SCR is not a mandatory form to file at the Companies Registry, this is an essential record to keep as certain law enforcement officers have the authority to access the SCR anytime without prior notice to the company, and failure to comply, a fine at level 4 (i.e. HKD25,000.00) with a further daily fine of HKD750.00 could be imposed.
Elements of the Significant Controllers Register