Government issues 30-day notice to private companies over annual returns
Government through the Registrar of Companies grants private firms 30 days to file annual returns
Government through the Registrar of Companies grants private firms 30 days to file annual returns.
The Registrar of Companies on Thursday granted private companies 30 days to file annual returns as per Section 705 of the Companies Act and Section 34E of the Limited Liability Partnerships Act.
According to the registrar, the move was also in line with the anti-money laundering regulations which are aimed at combating terrorism financing and dealing with proliferation financing.
In its directive, the Registrar of Companies ordered all private firms to prepare and maintain a register of their beneficial owners and present it before the government entity within four weeks of the notice.
The registrar revealed that failure by a company to file the information continuously for five years placed the firm at risk of being struck off the government’s register as per Section 894 of the Companies Act and 33A of the Limited Liability Partnerships Act.
In the notice, companies that fail to file the details of beneficial owners of the firms with the registrar of companies risked a fine of Ksh500,000 and Ksh50,000 for each day the company failed to submit the information.
Similarly, firms seeking to make amendments to the information submitted to the registrar of companies were directed to do so within fourteen days of such changes.
“Failure to comply will attract an administrative fine of Ksh2,000 for the company and each officer in default, with an additional penalty of Ksh100 for every day the default continues, applicable to both the company and the responsible officers,” the agency announced.
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“Take note that non-compliant companies and LLPs shall be struck off the Register per Section 894 of the Companies Act and 33A of the Limited Liability Partnerships Act,” the statement read further.
The move comes as the government intensifies its efforts to curb incidents of money laundering in the country. In February this year, the Financial Action Taskforce (FATF) placed Kenya on a grey list over allegations of an increase in cases of money laundering in East Africa’s most stable economy.
A grey list comprises countries that have been placed under high surveillance for partially dealing with cases of money laundering. The Financial Action Task Force acts as the watchdog and places non-compliant countries on a grey list or even a black list.
However, the Ministry of Treasury while responding to the greylisting, announced that it would seek technical assistance from various partners to enhance our framework, strengthen regulatory institutions and expedite the exit from the grey list.
“While there are still strategic deficiencies that require urgent attention, Kenya remains fully committed to implementing the FATF Action Plan comprehensively and expeditiously,” announced Njuguna Ndung’u, the former Finance Minister.
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