Nominee director in same country

[baio12]

Can you use nominee director in same country where you and your company are a resident so your name doesn't appear in public company records and in contracts with suppliers and customers? What still has to be in your name? Bank account I know for sure because they ask UBO but who else will have your information?

Payment processor ask for UBO but how do they know who is actual UBO? You can put nominee director when they ask for UBO?

Is nominee director illegal in any countries?

 

[JohnLocke]

It completely depends on where you live. In many European countries, it is not allowed to appoint a nominee director or shareholder – this is called a straw company and can be punished with fines or imprisonment. In my opinion, it is completely insane, but I am not the one making the rules.

This is part of the fact that so much crime has been committed with companies where the owners could not be identified and therefore went free.

 

[Don]

Can you use nominee director in same country where you and your company are a resident so your name doesn't appear in public company records and in contracts with suppliers and customers? What still has to be in your name? Bank account I know for sure because they ask UBO but who else will have your information?

Payment processor ask for UBO but how do they know who is actual UBO? You can put nominee director when they ask for UBO?

Is nominee director illegal in any countries?

Yes, you can do it, but keep in mind the so-called nominee director will always bear the full responsibility.

It is worth noting that, to a certain degree, all directors are “nominees” – i.e. chosen or nominated– usually by one or more members of the company. However, in many cases, the term “nominee director" does not merely refer to a director of a member’s choosing but one who will also act as directed and do what they are told. Indeed, in many cases, there are agreements to such effect. An important question is whether such agreements are effective.

You can look into regulated professional directorship services or trustee services providers, for instance. Perhaps they can be useful in your case.

Recent times have been a game-changer in this field.
The regulations have come with increased requirements for transparency, which make it increasingly difficult to remain truly anonymous.

A major initiator of this has been FATF. You can find some relevant reading:

https://www.fatf-gafi.org/content/dam/fatf-gafi/guidance/Guidance-transparency-beneficial-ownership.pdf.coredownload.pdf

There are certain jurisdictions that provide more anonymity than others, often for some very specific arrangements or structures.
E.g., some arrangements can be exempt from reporting or registration, provided certain conditions are met.

 

[baio12]

some arrangements can be exempt from reporting or registration, provided certain conditions are met.

What this means?

The regulations have come with increased requirements for transparency, which make it increasingly difficult to remain truly anonymous.

Possible if you don't want to hide from government and bank only from people and private companies like payment processors and customers?

To do like this is nominee director necessary or nominee shareholder? For signing contracts in their name.

 

[Forester]

What this means?


Possible if you don't want to hide from government and bank only from people and private companies like payment processors and customers?

To do like this is nominee director necessary or nominee shareholder? For signing contracts in their name.

Unless you specify what country you are asking about / interested in, it is impossible to answer. As @Don already has mentioned, rules and possibilities differ a lot across the world (even e.g. across the EU).

Just perhaps one remark:

Payment processor ask for UBO but how do they know who is actual UBO?

In many jurisdictions there is an official UBO register maintained by the government. If not, then

You can put nominee director when they ask for UBO?

maybe – but you can end your journey in the jail as a fraudster

 

[baio12]

maybe – but you can end your journey in the jail as fraudster

I presumed payment processor asking UBO is just formality and putting nominee is enough if there is no public UBO register. But if is more than formality then of course you must give real UBO to them too. There are more privacy breaches with payment processors so there's advantage to giving them nominee information if it is legal.

Payment processor is just private company like yours its not a government is it illegal to give them nominee information if they ask UBO? As long as you tell government and bank who is real UBO which you should.

 

[Don]

What this means?

Basically when FATF recommends something or EU imposes new directives, jurisdictions might interpret things differently and have slightly different regulations.
Unless you specify your jurisdiction you can only expect to receive very general answers.

 

[baio12]

Unless you specify your jurisdiction you can only expect to receive very general answers.

Jurisdiction is flexible.

 

[Forester]

I presumed payment processor asking UBO is just formality and putting nominee is enough if there is no public UBO register. But if is more than formality then of course you must give real UBO to them too. There are more privacy breaches with payment processors so there's advantage to giving them nominee information if it is legal.

Payment processor is just private company like yours its not a government is it illegal to give them nominee information if they ask UBO? As long as you tell government and bank who is real UBO which you should.

A food for thought:
1) Both banks and payment processors are private institutions. Yet they ask you for the UBO(s) because of governmental rules related to AML/CTF. Ask yourself whether it's legal to give any of them false information.
2) When you are onboarded by a payment processor, you are in fact agreeing on a business contract with a partner. Ask yourself whether it's legal to lie knowingly and willfully to your business partner with an intention to gain some advantage.
I think the result for cases (1) and (2) will be the same – and this is valid generally

Jurisdiction is flexible.

What do you mean by this? That you are flexible and ready to move to any country that allows you to be invisible to your customers and general public?

 

[baio12]

Ask yourself whether it's legal to lie knowingly and willfully to your business partner with an intention to gain some advantage.

Sound like civil matter not criminal.

because of governmental rules related to AML/CTF

If government asked them to collect UBO as opposed to doing it for their own process then is important to give real one.

That you are flexible and ready to move to any country that allows you to be invisible to your customers and general public?

If residence is possible to get.

 

[Forester]

Ask yourself whether it's legal to lie knowingly and willfully to your business partner with an intention to gain some advantage.

Sound like civil matter not criminal.

In any jurisdiction that I am familiar with this can be classified as a crimen called fraud in the vast majority of cases (sometimes the classification differs). (Of course it depends on how much money was in the game etc. but this is not the core.)

If government asked them to collect UBO as opposed to doing it for their own process then is important to give real one.

Well, do you think that they would ask for UBO if they were not forced by the government to do it?
This information serves them for nothing (esp. to payment processors, banks could eventually use it for an assesment of credibility, hypothetically).

 

[baio12]

Well, do you think that they would ask for UBO if they were not forced by the government to do it?

Companies that don't need KYC because of law ask for it to lower their risk. Not UBO but other things like identity or passport.

You are right should say truth to payment processors.