Sanctions as Means of Security in Registering Information on Beneficial Owners in the Register of Enterprises

Abstract

This research examines the place of sanctions as a means of security in the legal framework of the Republic of Latvia. Specifically, relation between the sanctions as a legal impediment and registration of beneficial owners by the Register of Enterprises has been analysed as the central problematic. The aim of this research is to evaluate effectiveness of the provisions of law with respect to sanctions as a legal impediment in registering beneficial owners in Latvia and argue for a necessity to introduce amendments for elaboration thereof. In order to achieve the aim, such research methods as analysis of relevant legal norms on sanctions, legal impediments to registration of beneficial owners and competence of the Register of Enterprises have been applied. To supplement arguments of the research, a number of case studies have been used to illustrate the current practice of the Register of Enterprises in registering information on sanctioned beneficial owners. Eventual findings of the research lead to a conclusion that legal framework on sanctions regarding registration of information on beneficial owners needs serious amendments to improve its effectiveness and accordance with latest international developments. The results of this research underline the necessity to define sanctions as a means of security in the Law on the Enterprise Register of the Republic of Latvia, so as to clarify the competence of the Register of Enterprises. Keywords: beneficial owners, civil legal restrictions, means of security, public register, Register of Enterprises, sanctions