The issues of protection of property rights to property were significant for mankind in any historical era and under a variety of socio-political formations. What is the most significant in these matters?
Some general provisions
In the definition and regulation of property relations, there are a number of fundamental concepts on which the entire current legislative framework and legal system is based. One of the most significant terms is such a concept as a beneficiary. This is a legal entity or a holder of ownership rights to a particular property and appropriately receiving income from such ownership. Or profiting from some operation of a commercial nature. In legislative and legal practice, there are a number of nuances, one way or another connected with this term. Let's try to consider some of them in more detail.
Who can be considered beneficiaries?
Sometimes in domestic legal practice such an international analogue of this term as "beneficiary" ("beneficiary") is used. In its meaning, it completely coincides with the concept of "beneficiary". This is nothing more than a synonym, historically dating back to Roman law. In Russian legal and economic practice, both terms are equally common. Who are usually considered beneficiaries? Most often, the beneficiary is a person who receives income in the form of his property transferred to trust management or for use by other persons or organizations. Relations with the beneficiary in this case, the users of his property occur on specially agreed conditions.
Beneficiary-insured
This term is also widely used in insurance. In the field insurance business the beneficiary is a natural or legal person who receives payments under the contract in accordance with the conditions specified in the insurance policy. This term is also very common in inheritance law. Here, the beneficiary is a person who receives certain property or financial rights in accordance with a will or current inheritance law. In addition, beneficiaries also include persons to whom banking structures provide various kinds of financial preferences.
Legislative regulation
The current legislation properly elaborates the rights and obligations that the beneficiary has, regardless of whether he is a legal entity or an individual. Thus, in particular, according to the current Civil Code Russian Federation, the beneficiary of a legal entity has the right to receive insurance payments in cases stipulated in the contract on insurance of his property, if it has suffered damage as a result of an insured event. The legal framework in the field of financial obligations has now been worked out in sufficient detail, the rights and obligations of both parties to the insurance contract are spelled out in it in an exhaustive manner. In addition to the Civil Code, insurance relations are regulated by the Law of the Russian Federation of November 27, 1992 "On Organization in the Russian Federation".
Responsibilities and
Insurance of its tangible property and other types of property gives its owner confidence in receiving financial compensation in the agreed amount if the property is damaged as a result of exposure to natural factors or any aggressive criminal encroachments. But the insured beneficiary, in accordance with the procedure established by law, also bears a number of obligations to the insurer with whom he has concluded an appropriate contract. The first of these is the timely payment in full of the contributions specified in the contract, or as they are often called "insurance premiums".
Additional obligations of the beneficiary
In addition to the mandatory payment of insurance premiums, the insured-beneficiary has a number of obligations to the insurer, as they say, "second order". But that doesn't make them any less important. Execution of the contract in the event of an insured event without compliance with these obligations is not possible. First of all, they should include the provision to the insurer of the entire documentary base for the object of insurance in full. Timely informing such of all changes that have occurred and any relevant circumstances. And most importantly, the insurer without fail must be informed about the occurrence of an insured event within the time period specified in the insurance contract. Of course, the beneficiary is obliged to fulfill this clause in the situation if he intends to exercise his right to receive the financial compensation due to him as a result of the occurrence of an insured event.
What makes an insurer pay?
Upon the occurrence of an insured event, the insurer is obliged to fulfill, in accordance with the terms of the contract concluded by him, all the financial obligations assumed to the owner of the affected property. These payments are certain cases can be more than significant. There are frequent cases when, in order to fulfill its insurance obligations, the insurer has to resort to external financial loans on difficult terms for him. What makes him do it? The point here is that insurance is, as they say, "a long game" and "running a long distance." And only those who are able to build a strategy for the development of their business in the long term can win here. An insurer that consistently fulfills its financial obligations acquires a reputation. And consequently, the client base, which will definitely be blocked for certain period time, all expenses incurred by him for the fulfillment of his financial obligations.
Some general thoughts
The history of the insurance business goes back several centuries. Appearing for the first time in Great Britain during the formation of industrial capitalism and the rapid development of world trade, this area has steadily grown and improved up to the present day. What is the attractiveness for all who are the beneficiaries of concluding agreements on insurance of their tangible property and other assets? After all, according to the concluded agreement, the beneficiaries have to assume quite significant financial obligations. The point here, perhaps, is that it is vital for property owners to have a sense of confidence in the achieved material results. They are driven by a desire for stability and confidence in the future. And the beneficiaries are willing to pay for it. It is this circumstance that makes them turn to insurers. No one else can sell them the necessary sense of confidence and stability. Both parties are equally interested in this deal. It should be noted that the successful development of the insurance business is possible only in a state with a steadily developing economy and a stable legal system.
The point here, perhaps, is that it is vital for property owners to have a sense of confidence in the achieved material results. They are driven by a desire for stability and confidence in the future. And the beneficiaries are willing to pay for it. It is this circumstance that makes them turn to insurers. No one else can sell them the necessary sense of confidence and stability. Both parties are equally interested in this deal. It should be noted that the successful development of the insurance business is possible only in a state with a steadily developing economy and a stable legal system. Why do you need a tiny pocket on jeans? Everyone knows that there is a tiny pocket on jeans, but few have thought about why it might be needed. Interestingly, it was originally a place for the…
The beneficiary is... who is the beneficiary?
In particular, if he acts as a victim, then he must provide all the documents relating to the occurrence of an insured event, a copy of the protocol on administrative offense and so on.
Replacement of the beneficiary The Civil Code allows the policyholder to replace the beneficiary.To do this, you just need to apply with an application to the insurance company.
There are cases when such a replacement is not possible, for example, when the beneficiary has already fulfilled a number of obligations for this agreement or has already issued documents for insurance payment.
Beneficiary of a legal entity - beneficiary: rights and obligations
Important
Beneficiary (also beneficiary, beneficiary from fr.
Benefice - profit, benefit) - an individual or legal entity to whom a cash payment is intended, a recipient of money. For example:
- A person who receives income from his property transferred to trust management to another person, legal or natural (when renting, hiring), or from the use of his property by third parties (for example, when a shareholder transfers shares for use to a broker in order to obtain maximum profit(dividend)), the original owner.
- In the case of a trust, the person receiving the income from the trust.
- In insurance, a person appointed by the insured to receive insurance benefits under an insurance contract.
Who is the beneficiary of the bank?
it individual(or several persons) that owns a legal entity or influences decision-making.
We are talking specifically about firms or companies, as well as the ownership of their assets or shares.
It is worth noting: the beneficiaries may not be listed in the title documents, while they continue to control what is happening. Hiding identity can be due to various reasons:
- For legal purposes, this happens for tax planning.
- The illegal may be associated with money laundering, corruption, terrorist financing or any kind of crime.
In Russia, the need to determine the ultimate beneficiary appeared in 2013.
Attention
In many countries, the concept of "Beneficiary" has not been formulated.
What is a beneficiary
The beneficiary of a legal entity is a legal entity in favor of which the client performs all the necessary actions provided for by the agency agreement, agency agreement, trust management agreement and other transactions not prohibited by the law of the Russian Federation.
- Legislative framework ↓
- Duties of law ↓
- Beneficiary Questionnaire ↓
- Insured event ↓
- Details ↓
The identification of clients and beneficiaries is carried out by financial and economic institutions, which are called upon to identify them on the basis of all available information, in accordance with the requirements of the legislative acts of the Russian Federation, securing such a right and requirement for them.
Beneficiary
What makes an insurer pay? Upon the occurrence of an insured event, the insurer is obliged to fulfill, in accordance with the terms of the contract concluded by him, all the financial obligations assumed to the owner of the affected property.
These payments in certain cases can be more than significant.
There are frequent cases when, in order to fulfill its insurance obligations, the insurer has to resort to external financial loans on burdensome conditions for him.
What makes him do it? The point here is that insurance is, as they say, “a long game” and “running a long distance.”
And only those who are able to build a strategy for the development of their business in the long term can win here.
An insurer that consistently fulfills its financial obligations acquires a reputation.
Who is the beneficial owner of a legal entity
Often in everyday life there may be disputes between you and a banking organization related to cash payments when you receive insurance, income from a rented apartment or house.
In this case, you cease to be a private person and enter the field of law.
You become a beneficiary. Beneficiary - an individual and a legal entity, an individual entrepreneur, an owner of property in whose favor this or that financial transaction is performed, a transaction by a third party: a legal entity or a group of legal entities, whether it is a notary or a broker, or a state-registered company officially offering certain services to individuals and legal entities on the market.
Basically, these are real estate, financial, Insurance companies, notary offices.
Beneficiary of a legal entity - rights and obligations
In the field of insurance business, the beneficiary is a natural or legal person who receives payments under the contract in accordance with the conditions specified in the insurance policy. This term is also very common in inheritance law.
Here, the beneficiary is a person who receives certain property or financial rights in accordance with a will or current inheritance law.
In addition, beneficiaries also include persons to whom banking structures provide various kinds of financial preferences. Legislative regulation The current legislation properly elaborates the rights and obligations that the beneficiary has, regardless of whether he is a legal entity or an individual.
In the economic, financial and insurance sphere, you can often come across the concept of "beneficiary" - who is this? We tell in an accessible language what key characteristics distinguish beneficiaries, how they differ from beneficiaries, and who can act as such.
The meaning of the term "beneficiary"
This term is used very widely in most different areas- economics, finance, banking and insurance. Each individual situation slightly changes its meaning. In Russian, the word "beneficiary" speaks for itself: one who acquires a benefit. However, to clarify the concept, let's look at the concept in a little more detail.
In a broad sense, a beneficiary is a party to a transaction (process, agreement) that receives any benefits or income. In a narrower sense, it is the recipient of funds. Synonyms of this concept are those who came from French“beneficiary” or “beneficiary” (we will talk about the difference between them later) or consonant “beneficiary”.
talking plain language, currently it is customary to call a person or an organization that, as a result of any circumstances (concluding a transaction, renting property) receive cash(rarely - other benefits).
In a broad sense, the beneficiary is the party to the transaction that receives any benefits or income.
Who can act as beneficiaries
The prevalence of the use of the term in different fields of activity explains the wide range of the number of those who can be "beneficial" in any given situation. Who is the beneficiary? Individuals and legal entities that receive income from transactions, inheritance, rental of property, payments under insurance contracts can act in this capacity.
The most common benefit situations are:
- Leasing property, including securities, in trust, rent or lease. For example, the owner of shares transfers them to a broker for use in order to receive maximum dividends as a result. Or owner commercial equipment leases it to another company for a fee.
- Receiving payments under an insurance contract.
- Receipt of remuneration from property held in trust.
- For a bank, a beneficiary is any person or organization that receives payments to their account as a result of any transaction.
Russian practice
The term beneficiary in Russian legislation is not very common. For example, in the Civil Code it concerns only the sphere of insurance (Article 956), while the law does not contain a specific definition of the term. A more detailed explanation of the concept can be found in the law "On the organization of insurance business in the Russian Federation".
In this way, there is currently no separate definition of this term in Russian legislative acts, and it is used mainly in the field of insurance - this is the name of the party receiving the insurance payment.
Related concepts: what does "beneficiary" mean
"Beneficiary" and "Beneficiary" - what's the difference? In practice, these concepts are most often used as synonyms, although in some cases there may be differences between them. Also it is important to know that the same person can be both the beneficiary and the beneficiary at the same time and sometimes only the last one.
In both cases, individuals and legal entities act in this capacity. Their main similarity is that they receive remuneration from the provision of their property for use under a lease, trust or other agreement.
Among the differences are:
- The beneficiary owns at least a quarter of all property, which gives him the right to manage a legal entity, make strategic decisions and appoint to senior positions.
- In most transactions, the beneficiary is obvious, while identifying the beneficiary is not always easy.
The ultimate beneficiary or beneficiary of private companies is always an individual.
Beneficiaries for legal entities
In fact, this concept is sometimes used in relation to the activities of companies with limited liability. The beneficiary of a legal entity is an organization or a citizen in whose favor transactions are concluded, financial resources and other remuneration are paid. That is, in most cases, this is the name of the party that ultimately receives financial rewards for the work of the company.
For example, the obvious beneficiaries will be the owners of property and means of production leased out. Suppose a company leases equipment. That is, one side will use it, and the real owner will receive remuneration for this.
Also, the beneficiary in an LLC is its actual owner, who receives the main income from its activities. That is, it is not CEO, who manages the company, and the founder, who has a decisive vote in resolving work issues and receives dividends.
Privacy of the ultimate beneficiary
It is important to know that the true beneficiary of a legal entity (also called the “ultimate beneficiary”) is not always indicated in founding documents. This happens for several reasons, most of which are related to violation of laws or financial fraud.
Among them are tax evasion, violation of prohibitions on engaging in any activity for those convicted of economic crimes, unwillingness to come to the attention of regulatory authorities. This is not a complete list.
At present, in the field of secondary and big business a common situation is when a company is owned not by an individual, but by another organization. The result can be a very confusing scheme, within which it is difficult to calculate the real beneficiaries. It is important to remember that the ultimate beneficiary or beneficiary of private companies is always an individual.
Summary
The beneficiary or beneficiary is the name given to individuals and legal entities who receive remuneration in the course of concluding transactions. For legal entities, the founders, as well as the owners of real estate and means of production, act in this capacity.
Market relations are developing, new economic entities are emerging. And many of the ordinary people do not understand what the word BENEFICIARY means. Let's try to figure it out. There are several definitions for this concept. And if you plan to engage in foreign trade activities, you definitely need to understand the whole variety of new concepts.
Beneficiary
Allowed to be a beneficiary legal entity and physical. Their income is generated by performing specific transactions. They are also beneficiaries from transactions that are performed with their property while managing on a fiduciary basis. Interested parties, as they are also called, can hold bills of exchange, bank letters of credit.
What is a beneficiary? If carried out foreign trade activity, it is the company that acts as the seller. If trust operations are carried out, this is the person who benefits from the trust management of his property.
There is another definition explaining who the beneficiary is. You can become a beneficiary by inheritance if the person who was recorded in the insurance policy as a beneficiary died before the expiration of this contract. Translated from French, this word is translated as profit.
Beneficial owner
By Russian laws The beneficial owner is the person who actually owns the entire company.
The beneficiary receives profit from the client's activities under an agency agreement or trust management.
The beneficial owner is an individual. He is the owner of the company directly or through other persons. Can control all client activities.
These persons may not appear in the constituent documents, but they fully control the conduct of business. By law, the beneficial owner has a share in the capital of a legal entity of twenty-five percent or more.
The ultimate beneficiary is an individual who owns the beneficiary organization. Just at the opening offshore companies hidden ultimate owners of profits emerged. Data about them is known only to the bank when opening an account and to the company's agent. The ultimate beneficiary may manage the bank account.
Read also: Checking account - what is it
Beneficiary and beneficiary
Is there anything similar and what is the difference between the beneficiary and the beneficiary? Both of them have income from the actions of the client. Difference. The ultimate owner has a share in the company, a quarter of it or more. And he can control the activities of this company and manage it. The beneficiary cannot do this. He doesn't even have his share.
It is the beneficiaries that are controlled by the state. There is certain conditions when the company is obliged to provide the necessary information about them. This is necessary in order to identify criminal acts and prevent them. Also this information helps prevent financial fraud.
Beneficiaries and information about them
We have already said why information about these persons may be required. AT recent times one more point has been added, no less important than the above - the prevention of terrorist operations and the fight against terrorists.
Banking structures may also require necessary information and companies are required to provide them. And from banks, this information goes to Rosfinmonitoring. Banks cannot fail to do this, because otherwise they may be fined up to half a million rubles. This applies not only to banks, but to any financial institutions.
Some companies, in order to hide the data of the real owner, open an account for a person who has only the right to sign. The beneficiary person in this case is under constant control. It turns out that it is easy to identify the beneficiary, and more difficult - the real owner.
The data of the real owners is requested by both financial and other state institutions. For example, when contracts are public procurement. In the document "Information on the chain of owners, including beneficiaries", all data of beneficiaries is recorded.
Rights and obligations
The rights of beneficiaries are protected by law. But they also have some obligations. The beneficiary can protect his property by a special trust management agreement. If the contract is violated, the ultimate owner and nominee are responsible for this.
Beneficial owner - an entity that does not have a specific status established by law. This concept applies to companies that have legal and legal relations with institutions operating in the field of property and financial services. The list of such organizations is provided by Article 5 of Law No. 115-FZ. The beneficial owner can be either one person or a group of people acting as direct owners of a legal entity or an individual entrepreneur, or having some influence on the decision-making of a legal entity in the course of its activities. Often this person or group is not indicated either in the founding documentation or in internal organizational documents. But, despite this fact, it is the beneficial owner who can be the full owner of the company without disclosing his identity. Such activities of a company with a formal director or manager are often used to hide income and “launder” illegally, illegally obtained funds. Such a situation can also arise if the owner of the company wants to significantly save on tax payments, which also seems to be an offense against the state.
Beneficial owner individual entrepreneur is, in fact, the true owner of IP. He controls the activities, makes important business decisions, makes a profit and manages the management process. But the amendments made to Law 115-FZ are precisely aimed at legalizing business, withdrawing profits from the shadow. Additions to the law establish the mandatory identification of clients by all organizations working with businessmen: banks, insurance companies, credit organizations. They are charged with the duty to “monitor” clients in order to identify beneficial owners and report violations found to authorized state bodies.
The beneficial owner of an individual entrepreneur, according to the above law, can have at least 25% of the total amount of property, both monetary and otherwise. But he is the owner through nominees, managing them without proper documents. The identification of the beneficial owner (beneficiary) is carried out by questioning clients and other measures. For the full identification of the person-client, it is provided to fill out a questionnaire disclosing the following information about the entrepreneur:
Date and place of birth of the citizen;
Address of actual residence or stay;
IP citizenship;
For foreign entrepreneurs - permission to stay in Russia;
Passport data of an individual.
The beneficial owner of an individual entrepreneur is established in accordance with the current legislation. But at this stage, banking and other institutions that monitor customers face certain difficulties. After all, some customer data, including individual entrepreneurs, fall under the law on the protection of personal data, and cannot be disclosed. The institution has the right to request only that information of the client, which is indicated in the list established by law. To collect information about the client, all documents submitted by him are used. This may be a questionnaire, applications for opening an account, written notices, and so on. If the institution does not identify the beneficial owner, then the individual entrepreneur or legal entity may be recognized as such.
Monitoring to identify the beneficial owner is not applied to the following category of persons:
State organizations and institutions;
Local and municipal authorities;
Extra-budgetary funds, the actual owner of which is the state;
All companies, the full owner of the shares of which (more than 50%) is the state or its representatives;
International companies that have the necessary legal capacity to do business;
Issuers of certain securities.
In some situations, banks and other organizations process information about the client without his notice and consent. These situations are provided for by international agreements and treaties, or regulations Russia.