The Liberian Government decided to introduce a major change in the offshore companies registered in this African country: The issuance of shares to the bearer will no longer be accepted. This amendment of the law was adopted to meet international standards and eliminate the risks of illegal evasion, illicit flow of capital, money laundering and terrorist financing.
Offshore companies previously registered in Liberia that had been authorized to use bearer shares will have until December 31 of this year to convert said bearer shares to shares registered with a holder, another option that these companies have is to maintain the bearer's actions, but by signing a custody agreement with a custodian approved by the Liberian authorities. This Agreement shall include the presentation of the name and contact details of the person carrying the shares to the bearer and the beneficiary holder; Although all that information will remain confidential.
If any already registered offshore company in Liberia had not issued shares to the bearer and preferred to maintain the authority to issue such actions, then the company should inform the authorities.
If Liberian offshore companies do not comply with any of the three steps aforementioned, as of December 31 of this year, all bearer shares will be disabled and the company may receive a high fine, as well as face a possible revocation or cancellation of their incorporation documents.