What is a Person with Significant Control (PSC)?

Understanding Persons with Significant Control (PSC)

A Person with Significant Control (PSC) refers to any individual who holds ownership or exercises control over a company. These individuals are often referred to as Beneficial Owners (BOs). As of April 2016, it is mandatory for every Limited Liability Partnership (LLP) and unlisted company in the UK to maintain a PSC register. This register must document all PSCs associated with the business and be submitted to Companies House for inclusion in the national PSC Register. This regulation aims to combat bribery, corruption, and money laundering while promoting better corporate governance.

Who Qualifies as a PSC?

Eligibility criteria for someone to be considered a PSC within a company includes meeting one or more of the following conditions:

• Ownership of Shares: Holds more than 25% of the company's shares.
• Voting Rights: Possesses more than 25% of the company's voting rights.
• Board Influence: Has the authority to appoint or remove a majority of the board of directors.
• Business Influence: Can influence the business in any substantial way.
• Influence via Trust/Firm: Has a significant influence over a trust or firm that controls the company.

It is crucial to note that a single company may have multiple PSCs, as several individuals can surpass the 25% threshold for shares or voting rights.

Companies Limited by Guarantee

Many charities and non-profit organizations in the UK operate as companies limited by guarantee. Such entities usually feature guarantors instead of traditional shareholders. Profits earned by these organizations are typically reinvested internally to further their objectives rather than distributed among members. Despite lacking shareholders, companies limited by guarantee can still have PSCs if individuals meet any of the aforementioned qualifying criteria.

PSC Registers and Their Importance

A PSC register is a formal record of all declared PSCs within your company. Maintaining a PSC register is a legal requirement, even if there are no PSCs to document or if you are in the process of identifying eligible individuals. The information to be recorded on the PSC register includes:

• Name, Address, and Date of Birth: Personal identification details of the PSC.
• Nationality and Country of Residence: Information about the PSC's nationality.
• PSC Transition Information: Details on how and when the individual became a PSC.
• Shares and Voting Rights: Information on the shares held and voting powers.
• Control and Influence: Details surrounding the nature of their control or influence.
• Privacy Applications: Any requests for confidentiality of their details from public access.

It’s important to communicate all PSC information to Companies House, as failing to do so may result in criminal charges. Additionally, if any changes occur regarding a PSC’s status, your records must be updated, and Companies House should be informed promptly.

The Consequences of Non-Compliance

Failure to comply with PSC regulations can lead to severe penalties for your company, which may include substantial fines or even imprisonment for up to two years. These penalties can affect both the business and the PSCs involved.

How AMLBuddy Can Assist

The robust platform offered by AMLBuddy allows for thorough checks of current and former PSCs associated with any company registered with Companies House. This capability enhances your AML compliance and risk management strategies significantly.

Our services are designed to be secure and reliable, utilizing resources such as the Dow Jones WatchList to deliver information that is consistently accurate and up-to-date.

Get in Touch

To learn more about Persons with Significant Control (PSC) and ensure your company remains compliant with AML regulations, contact an AML expert today.