The Department of Registrar of Companies and Intellectual Property has announced significant legislative updates to the Register of Beneficial Owners framework, effective as of December 6, 2024. These changes are outlined in the Prevention and Suppression of Money Laundering Activities (Amendment) (No.2) Law of 2024, Law No. 141(I)/2024.
Key Amendments:
- Financial penalties will be imposed solely on the company or other legal entity that refuses, neglects, or fails to fulfill its obligations regarding the submission of beneficial ownership information. Penalties will not be imposed on directors or secretaries.
- A director or CEO of a company that refuses, neglects, or fails to comply with these obligations will be jointly and/or severally liable with the company for the payment of the financial penalty imposed on the entity.
- The updated penalty structure imposes a €100 fine on the first day of non-compliance, with an additional €50 charged for each subsequent day, up to a maximum of €5,000 per entity.
Extended Deadlines:
The submission of beneficial ownership information has been extended to January 31, 2025, and the confirmation of the UBO information for 2024 has been extended to March 31, 2025.
New Provisions:
Authorities are now empowered to issue directives for administrative reviews or appeals against penalties, delete entities that fail to update beneficial ownership information from the business entity register, and seek court orders for compliance with obligations.
Financial penalties imposed since April 1, 2024, will be revoked, and the relevant amounts refunded. It is crucial to note that non-compliance from February 1, 2025, will result in administrative and other sanctions under the amended framework.
How can Bybloserve Management assist you?
We can advise and assist you in submitting the required information to the UBO Registry and provide any support that may be necessary to ensure compliance with these regulatory obligations and avoid any penalties or other liabilities that may be imposed.
DISCLAIMER: The information contained herein is provided for general information purposes only and does not constitute and neither shall be construed as legal or other professional advice. Neither Bybloserve Management Limited nor any of its employees accept any liability for any loss arising from relying on the information contained herein.