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]

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

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

Recent times have been a game-changer in this field.
The regulations have︇ 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/d...ncy-beneficial-ownership.pdf.coredownload.pdf
There are certain jurisdictions that provide more anonymity than others, often for some very specific︉ arrangements or structures.
E.g., some arrangements can be exempt from reporting or registration, provided certain︊ conditions are met.

 

[baio12]

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.

 

[Forester]

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:
In many jurisdictions there is an official UBO register maintained by the government. If⁢ not, then
maybe – but you can end your journey in the jail as a︀ fraudster 🙂

 

[baio12]

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 tell︀ government and bank who is real UBO which you should.

 

[Don]

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]

Jurisdiction is flexible.

 

[Forester]

A food for︀ thought:
1) Both banks and payment processors are private institutions. Yet they ask you for︁ the UBO(s) because of governmental rules related to AML/CTF. Ask yourself whether it's legal to︂ 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 whether︄ it's legal to lie knowingly and willfully to your business partner with an intention to︅ gain some advantage.
I think the result for cases (1) and (2) will be the︆ same 😉 – and this is valid generally 🙂
What do you mean by this? That you are flexible and ready to move to︈ any country that allows you to be invisible to your customers and general public?

 

[baio12]

Sound like civil matter‍ not criminal.
If government asked them to collect UBO as opposed to doing it for their own process⁠ then is important to give real one.
If residence is possible to get.

 

[Forester]

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.)

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

 

[baio12]

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.