Next month marks a critical deadline for all Costa Rican corporations: the submission of the 2024 Registry of Transparency and Final Beneficiaries (RTBF). Compliance with these regulations is essential to avoid penalties and business operation interruptions.
As Costa Rica continues to strengthen its corporate transparency and compliance with international financial regulations, there are significant changes implemented in 2024 that all corporate owners, trustees, and beneficiaries must be aware of. The Registry of Transparency and Final Beneficiaries (RTBF) is at the center of these changes.
Here, we break down the upcoming regulatory deadlines, key updates, and how we can help you meet these requirements seamlessly.
Understanding the Registry of Transparency and Final Beneficiaries (RTBF)
The RTBF is a mandatory registry aimed at increasing transparency in corporate ownership and combating financial crimes such as money laundering and tax evasion. All corporations operating in Costa Rica are required to disclose detailed information about their beneficial owners to comply with national and international standards set by bodies like the Financial Action Task Force (FATF).
Key Regulatory Updates: 2024 FATF Compliance & RTBF Filing Extension
Recent amendments to Costa Rica’s RTBF, made under Executive Decree No. 44390-H and aligned with Financial Action Task Force (FATF) recommendations, have introduced new compliance requirements and expanded the scope of entities required to report.
Here are the critical updates for 2024:
- Extended Filing Deadline: October 2024
The filing deadline for submitting RTBF declarations has been pushed back to October 2024. Originally set for April, this deadline was first extended to July 2024, but due to recent court rulings and regulatory complexities, businesses now have until October to ensure compliance.
This extension grants additional time for companies to prepare accurate filings and adjust to the expanded reporting requirements. However, it’s important to note that this deadline may not not be final, and we are standing by if further extensions are made during this time.
- Expansion of Reporting Requirements
Several new types of entities are now required to report their beneficial ownership, including:- Non-Profit Organizations and Foreign Affiliates: Previously exempt, these organizations must now disclose their beneficial owners.
- Trusts and Foreign Entities: Private trusts and foreign legal entities active in Costa Rica or holding legal identification numbers from the National Registry must also comply with the new rules.
- Special Power of Attorney Restrictions – Temporarily Suspended
Under the latest regulations, the use of special powers of attorney for filing RTBF declarations was significantly restricted. Only in “exceptional, duly justified cases” could a general power of attorney be used. However, the Administrative Contentious Court has provisionally suspended these limitations. Corporations may continue using special powers of attorney until further legal decisions are made, but it is still advisable to prepare for these changes as they could be reinstated at any time.
What This Means for Business Owners and Beneficiaries
These changes are part of Costa Rica’s broader strategy to enhance corporate transparency, combat illicit financial activities, and align more closely with FATF international standards. For business owners, trustees, and beneficiaries, the updates mean:
- Compliance Obligations: Non-compliance with RTBF reporting requirements could result in significant fines and reputational damage.
- Operational Adjustments: Businesses will need to update their internal reporting processes and systems to meet the new requirements.
- Legal Complications: Understanding the legal specifics of these new rules is essential to avoid potential penalties or legal challenges down the road.
How Blue Zone Legal Can Help You Stay Compliant
At Blue Zone Legal, we understand that these complex regulations can be overwhelming, which is why we are here for you. If you’re enrolled in our Corporate Compliance Annual Services package, rest assured that the submission of your RTBF declaration is already included in your package. Our team will reach out shortly to coordinate the preparation of the necessary paperwork.
For those not enrolled in our compliance package, we’re here to help. We can prepare a custom quote based on your specific needs, whether you’re a corporation, trust, or foreign entity now required to report under the new rules.
However, please keep in mind that the regulatory environment is still fluid. We may need to wait until the end of the month to see if there are any last-minute changes or further extensions. But this doesn’t mean you should delay—we must begin preparing the paperwork as soon as possible to avoid any potential last-minute rush.
Next Steps: Get Ahead of the October 2024 Deadline
With the October 2024 deadline fast approaching, it’s time to act. Whether you’re a seasoned business owner or new to Costa Rica’s regulatory framework, ensuring compliance with the RTBF is essential to protecting your business and avoiding costly penalties.
Blue Zone Legal is committed to simplifying this process for you. From managing corporate tax obligations to ensuring your paperwork is filed on time, our experts are here so your business remains compliant, transparent, and well-positioned for future growth.
Contact us today to get started, or to receive a personalized quote. We’ll be keeping a close eye on any further developments. Don’t wait. Reach out now to avoid the last-minute scramble.
Stay Compliant, Stay Informed, Stay Ahead.
Have more questions on how these changes affect your business and how we can assist? Visit Blue Zone Legal or give us a call at 506-2506-3873.
Let us handle the complexities of corporate compliance, so you can focus on what matters most—growing your business.
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