New obligation for ONPs: declaration of ultimate financial beneficiaries

Arias - As a complement to the Regulation of Non-Profit Organizations (NPOs) for the Prevention of Terrorism Financing, which establishes the obligation to register the beneficial owners of NPOs, on February 13, 2025, the Ministry of the Interior issued a circular detailing the requirements for such declaration.

In order to comply with the obligation to declare beneficial owners, NPOs must submit the required information to the General Directorate for Registration and Control of NPOs (DGRC-OSFL) through a notarized certification of the minutes of a general assembly held in accordance with the Bylaws of each NPO. The application for registration must include the following:

For national NPOs:

1. Notarized certification of the general assembly of members, which must include:
The act number and page number in the Minute Book.
The place, date, time and type of meeting (ordinary or extraordinary) as stipulated in the Bylaws.
The legal quorum and the list of members present and absent, with their full names and identity card numbers.
The designation of the final beneficiaries, indicating their full names and legal data.
2. Detailed list of final beneficiaries, which shall include:
Full names according to the identity document.
Executive position according to the Articles of Incorporation and Bylaws.
Identity card number, address, telephone numbers and e-mail address.
Profession, occupation and nationality.
3. Legible photocopy of the identity documents of the persons declared as final beneficiaries.
4. Minutes book where the declaration is recorded.

For foreign NPOs:

1. Minutes of the agreement of the board of directors of the country of origin, naming the legal representative in Nicaragua as the final beneficiary, including his/her full name and legal data.
2. All documentation must be certified, apostilled and notarized in Nicaragua, both in original and in copies certified by a notary public, with the corresponding fiscal charges and notary seals.
3. Legible photocopy of the identity document of the legal representative.
4. The corresponding Minute Book.

NPOs must keep the information on their beneficial owners up to date and submit supporting documentation when submitting the declaration to the DGRC-OSFL. Failure to comply with this obligation constitutes a very serious infraction, which entitles the DGRC-OSFL to impose one or more sanctions, in accordance with the provisions of Law No. 1115, General Law for the Regulation and Control of Nonprofit Organizations.

A fine of C$5,000.00 to C$10,000.00 shall be imposed in favor of the State for each breach of obligations or violation of the prohibitions set forth in the law. In case of recidivism, the fine shall be doubled.
The DGRC-NPO may intervene in NPOs for as long as it deems necessary when violations of the Law, Regulations and Rules are detected. Such intervention may result in suspension or the issuance of a legal opinion to request the cancellation of the legal personality of the NPO.
The DGRC-NPO may suspend the operation of an NPO for up to 3 years for non-compliance with obligations or incurring in prohibited actions established in the Law, Regulations and Rules.

Therefore, NPOs must take the necessary measures to ensure compliance with these new provisions.

ariaslaw.com