Enterprise Register changes the practice of registering true beneficiaries
Right to invoke the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing ('NILLTPFNL') 18. The attestation referred to in the sixth paragraph of Article 2 shall consist of legal persons whose shares in the 'chain' final stock company are listed on the exchanges of the Member States of the European Union or of the European Economic Area.
NILLTPFNL 18. The exception provided for in Section 2, Paragraph six, to not provide information on the true beneficiary to the Enterprise Register of the Republic of Latvia (hereinafter referred to as 'the Register') may not be applicable to cases where, for objective reasons, the true beneficiary cannot be identified, but this applies to situations where information on the true beneficiary has already been disclosed in accordance with the requirements of the regulated market.. This interpretation of that provision also stems from Directive (EU) 2015/849 of the European Parliament and of the Council on the prevention of the use of the financial system for money laundering or terrorist financing and amending Regulation (EU) No 684/2012 of the European Parliament and of the Council and repealing Directive 2005/60/EC of the European Parliament and of the Council and Directive 2006/70/EC of the Council3. paragraph 6 and the recommendation of the European Parliament of 13 December 2017 to the Council and the Commission, following an investigation into money laundering, tax avoidance and avoidance, paragraph 87, which stipulates, inter alia, that a public limited liability company on a regulated market is subject to disclosure requirements under Union law, or equivalent international standards ensuring adequate transparency of ownership information  The FATF recommendations also require adequate and accurate up-to-date information on the true beneficiaries to be available to the competent authorities and other entities to access it .
The regulatory framework for the provision of the market in financial instruments is covered by the Financial Instrument Market Act (hereinafter 'FITL'). In accordance with Article 1, first paragraph, point 21 of THE FIRST paragraph OF THE FITL, a qualifying holding is a direct or indirect holding covering five and more per cent of the voting capital of the issuer. A qualifying holding is a holding acquired directly or indirectly by a person or several persons acting in a coordinated manner on the basis of an agreement, covering 10% or more of the share capital of a commercial company or the number of shares or shares with voting rights, or allowing a significant influence on the financial and operational policies of the commercial company (Article 1, first paragraph, paragraph 19 OF THE FITL). On the other hand, a person shall obtain a control element if:
- this person has a decisive influence on the basis of the participation in the commercial company;
- this person has a decisive influence on the basis of the group agreement in the commercial company;
- there are other relationships between that person and the commercial company, analogous to the relationship referred to in Sub-paragraphs 1 or 2 of this paragraph.
Under Article 61 OF THE FITL, a person has an obligation to declare his or her voting rights when, as a result of the acquisition, disposal, increase or reduction of shares or any other event, he reaches, exceeds or falls below 5, 10, 15, 20, 25, 30, 50 or 75 per cent. If the State of origin of the stock company is the Republic of Latvia - the notification obligation also arises when the proportion of 90 and 95 per cent is reached. The notification obligation shall also apply to persons who have indirectly acquired an indirect holding, for example by entering into an agreement with a shareholder, by imposing an obligation to harmonise the policy of exercising and acting voting rights in the long term with regard to the management of the issuer in question (Article 8(1) FITL). The notification to the stock company and at the same time the Finance and Capital Market Commission shall be submitted without delay, but not later than within four trading days after the date on which the person:
- become aware of the acquisition or alienation of voting rights or the possibility of exercising voting rights or, in the light of the circumstances, it should have learned about it, regardless of the date on which the acquisition or disposal of voting rights or the possibility of exercising voting rights takes effect. For the purposes of this paragraph, a person shall be deemed to be aware of the acquisition, alienation or possibility of exercising voting rights not later than two trading days after the date of the transaction;
- shall be informed of such event, as a result of which the proportion of voting rights of a person reaches, exceeds or becomes less than the proportion of voting rights specified in Section 61, Paragraph one or two of this Law.
A stock company shall distribute it not later than within one trading day from the day of receipt of the notification 64 of this Law. In accordance with the procedure laid down in Article 2 (FITL 61. The third paragraph of Article 3), inter alia by sending it to the official centralised storage system for regulated information.
In addition, it should be noted that common standards for the disclosure of shareholding companies are set only at European Union and European Economic Area level.  If the shares of the 'chain' final stock company are listed outside the European Union or the European Economic Area, then taking into account the fact that the shares outside the European Union or the European Economic Area are not common, the legal framework and this may be different from the legislation in force, which applies to the European Union and the European Economic Area Member States (the obligation to disclose voting rights, as well as, for example, the understanding and specificity of the regulated market), cannot be invoked BY the legal person TO NILLTPFNL 18. The sixth paragraph of Article 2. Namely NILLTPFNL 18. The exemption for the notification of true beneficiaries contained in the sixth paragraph of Article 2 shall apply to legal persons whose shares in the 'chain' final stock company are listed in one of the Member States of the European Union or the European Economic Area. On the other hand, if the shares of a 'chain' final company of a legal person are listed on a stock exchange which is outside the European Union or the European Economic Area Member States, information on the true beneficiaries of the legal person must be submitted to the Register in general terms, i.e. the legal person shall indicate the body of its owners or, accordingly, a statement that the true beneficiary cannot be identified, stating the reasons.
The above applies as regards the registration of new information on the true beneficiaries, providing proof that the information on the true beneficiary has not changed in the past. In particular, where a legal person has previously registered a declaration in the Register that its true beneficiary is a shareholder in a stock company whose shares are admitted to the regulated market, and the way in which control over the legal person is exercised stems only from the status of the shareholder, while applying for a change, the application form noted that the registered information on the true beneficiary has not changed, the notary of the State of the Register, when examining the 'chain' of the legal person and determining that the shares of the final stock company have been quoted outside the European Union or European Economic Area Member States, is entitled to request the legal person to clarify the information regarding its true beneficiary in accordance with the above.
 Recommendation of the European Parliament of 13 December 2017 to the Council and the Commission following investigations into money laundering, tax avoidance and avoidance. Available:
https://eur-lex.europa.eu/legal-content/EN/TXT/? uri = uriserv %3AOJ.C_.2018.369.01.0132.01.ENG & toc = OJ %3AC% 3A2018 %3A369% 3AFULL
 FATF guidance. Transparency and beneficial ownership. Entry point 3. Available:
 pursuant to Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC