Due to the difficulties encountered during the implementation of Law 112/2020, the Ministry of Economy and Finance proposed some amendments in order to increase the number of the reporting of beneficial owners by simplifying the registration procedures. The amendments were approved by the Parliament on 27.01.2022.
The amendments relate to (i) procedures and deadlines for the registration of the beneficial owners (article 5 and article 6 of the Law), (ii) administrative offenses (article 13 of the Law) and (iii) extension of the deadline for the registration of the beneficial owner/s for entities that have not yet fulfilled this obligation and to pardon the fines already imposed.
Initial registration of beneficial owners by reporting entities with direct ownership
In cases of initial registration of companies with direct ownership, the application for registration of the beneficial owner is submitted at the same time with the application for registration of the company in the commercial register. The National Business Center registers the data on the beneficial owners simultaneously with the registration of the company in the commercial register. The application is filed with service desks at the National Business Center.
Initial registration of beneficial owners by reporting entities with indirect ownership
In cases of initial registration of companies with indirect ownership, the application for registration of the beneficial owner is simultaneously submitted with the application for registration of the company in the commercial register. The application is filed with service desks at the National Business Center.
The review of the application for the registration of the beneficial owner is conducted no later than two working days from the receipt of the application. In case of refusal, the reporting entity should resubmit the application within 40 calendar days from the date of refusal.
Failure to register the beneficial owner/s within 40 days is punishable by a fine in the amount of ALL 50,000.
Failure to register the beneficial owner/s within 40 days after the expiration of the deadline specified above is punishable by a fine in the amount of ALL 600,000.
Initial registration of beneficial owners by non-profit organizations
In cases of initial registration of non-profit organizations, the application for the registration of beneficial owners should be submitted within 40 calendar days from the date of registration of reporting entities as a legal entity.
Failure to register the beneficial owner/s within 40 days is punishable by a fine in the amount of ALL 50,000.
Failure to register the beneficial owner/s within 40 days after the expiration of the deadline specified above is punishable by a fine in the amount of ALL 600,000.
Registration of changes in the register of beneficiary owners
In the case of registration of changes in the data of the beneficial owner/s, the application should be filed within 90 calendar days from the date of occurrence of the change.
Failure to register the change, within the deadline specified above is punishable by a fine in the amount of ALL 400,000.
Suspension of the application
Upon the receipt of the application, the National Business Center within two working days decides to suspend the application for initial registration, change or update the data, giving the reporting entity a deadline of 30 (thirty) calendar days in order to complete the deficiencies that prevent registration. If the reporting entity does not complete the deficiencies after the expiration of the 30-day deadline, the application will be refused.
Extension of the deadline until 30.06.2022
Reporting entities registered in the Commercial Register with indirect ownership and reporting entities registered in the Register of Non-Profit Organizations, which on the date of entry into force of these amendments, have not fulfilled the obligation about the initial registration of beneficial owners or have not registered the changes in the register of beneficiary owners, must fulfil these obligations within 30.06.2022.
Failure to comply with the above obligation within 30.06.2022 is punishable by a fine in the amount of 400,000 ALL.
Pardon of fines imposed, and reimbursement of fines paid
All the penalties imposed before the entry into force of these amendments, which were not paid, are pardoned in the amount of 100 percent.
Reporting entities, which before the date of entry into force of these amendments have paid the fines and fulfilled the relevant obligations for the registration of their beneficial owners, have the right to apply to the National Business Center for a refund of the amounts paid.
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