Decree No (2) of 2022 (“The Decree”) dated 7th February 2022 was released by the Ministry of Commerce and Industry (MoCI) on meeting the requirements of anti-money laundering measures and combating the financing of terrorism related to commercial companies.
The Decree applies to commercial companies as defined in Article 4 of the Commercial Companies law at any point of their establishment, management, expiry or bankruptcy or if they are the subject of a protective composition or under judicial receivership. Joint venture companies shall be exempt from the application of the provisions of the decree.
MoCI recognized the need and importance to emphasize upon the risks of money laundering and terrorism financing and particular the detrimental impact on the business environment in the State of Qatar. The decree acts as an demonstration of MoCI’s commitment to reducing illicit financial crimes and strengthening anti money laundering measures and establishing a suitable framework.
The Decree first defines particular words and expressions of importance and for the purpose of clarity.
The Decree then sets out the basic information a trading company is required to retain:
- Name of the company i.e. the name contained in the memorandum of association
- Proof of incorporation
- Legal form of the company and the contents of the company’s memorandum of association
- Status of the company, including whether it is active, inactive, under liquidation, subject to bankruptcy or protective composition procedures or under receivership
- The company’s registered office and the headquarters of its actual management
- Basic regulatory authorities, meaning the company’s memorandum of association or incorporation document, the company’s articles of association, and any other documents that regulate the management and conduct of the company’s business and determine the powers and responsibilities of management therein, according to the legal form of the company.
- A list of directors, include representatives of the company and individuals who have the right to sign on its behalf
The basic information shall then be made available to the public on the Ministry’s website.
The trading company is then required to keep the following mandatory records:
- A complete and up-to-date record of the data and documents
- Record the required information on the beneficial owners
- The register of partners or shareholders, which shall include their names, nationalities, addresses, number of shares or shares owned by each of them, classes of shares and shares, including the nature of the voting rights associated and any changes that may occur.
The company shall keep physical and electronic copies of the records and promptly provide them when requested. MoCI may at any time request to review the information contained in the records.
The company is required to designate at least one person residing in the State of Qatar who shall be authorized to provide any requested information. Commercial companies are obligated to keep all information up to date and as soon as either the manager or partner becomes aware that any information has changed, shall notify the company and MoCI within thirty days of the change occurring.
Due to the level of information commercial companies are required to provide, it is evident that MoCI is committed to providing the utmost transparency, particularly by making the information available to the public. This shall assist in making companies and their representatives accountable for any actions and decisions that they make take which shall be easily traceable.