On November 13, 2023, amendments to the Law on State Registration of Legal Entities and Individual Entrepreneurs will come into force.
These amendments expanded the list of cases in which a legal entity is excluded from the Unified State Register of Legal Entities by the registration authority, synchronizing it with par. 4 of Article 7.8 of the Law on Combating Money Laundering and Financing of Terrorism, introduced on October 1, 2022. According to this provision, the Bank of Russia shall send to the registering authority information on legal entities, which are classified by it within the framework of implementation of the “Know Your Client” powers by banks to a high-risk group due to suspicious transactions, for the purpose of their exclusion from the EGRUL. However, before the relevant amendments were made to the Law on State Registration of Legal Entities, this norm was not applied (Resolution of the Moscow Arbitrage Court of October 3, 2023 in case No. A40-148759/23-147-1193).
Similar norms have been adopted with regard to the exclusion from the Unified State Register of Individual Entrepreneurs (EGRIP).
In addition, amendments to the Law on State Registration of Legal Entities provide for the inclusion of information on the forthcoming exclusion of any organizations from the EGRUL and entrepreneurs from the EGRIP, as well as the procedure and terms for submitting objections to such exclusion. Currently such information is reflected only in the EGRUL in respect of legal entities which are small and medium-sized enterprises.
These amendments expanded the list of cases in which a legal entity is excluded from the Unified State Register of Legal Entities by the registration authority, synchronizing it with par. 4 of Article 7.8 of the Law on Combating Money Laundering and Financing of Terrorism, introduced on October 1, 2022. According to this provision, the Bank of Russia shall send to the registering authority information on legal entities, which are classified by it within the framework of implementation of the “Know Your Client” powers by banks to a high-risk group due to suspicious transactions, for the purpose of their exclusion from the EGRUL. However, before the relevant amendments were made to the Law on State Registration of Legal Entities, this norm was not applied (Resolution of the Moscow Arbitrage Court of October 3, 2023 in case No. A40-148759/23-147-1193).
Similar norms have been adopted with regard to the exclusion from the Unified State Register of Individual Entrepreneurs (EGRIP).
In addition, amendments to the Law on State Registration of Legal Entities provide for the inclusion of information on the forthcoming exclusion of any organizations from the EGRUL and entrepreneurs from the EGRIP, as well as the procedure and terms for submitting objections to such exclusion. Currently such information is reflected only in the EGRUL in respect of legal entities which are small and medium-sized enterprises.