Overview
In light of the amendments published on December 6, 2024, under the Prevention and Combating of Money Laundering and Terrorist Financing Law (Amendment) (No. 2) Law 141(I)/2024, we outline below the key updates pertaining to the Register of Beneficial Owners.
Key Amendments
1. Financial Penalties for Submission of Beneficial Owners’ Information
Financial penalties will now be imposed exclusively on companies or other legal entities that fail to fulfill their obligations to submit beneficial owners’ information, as mandated by Law 188(I)/2007 and relevant guidelines. Directors and secretaries of companies will not be personally subject to financial penalties.
Notwithstanding the deletion of the provisions related to the imposition of additional monetary fines on each director of the defaulting company, the amending law provides that a director or managing director of a company, which refuses or omits or neglects to fulfil the obligations for the filing of the details of their beneficial owners with the BO Register, is jointly and/or severally liable with the company for the repayment of the monetary fines imposed on the company.
2. Revision of Financial Penalties
Updated financial penalties include an initial penalty of €100 on the first day of violation, followed by €50 for each additional day the violation persists, up to a maximum penalty of €5,000 per company or legal entity.
3. Registrar of Companies’ Authority for Administrative Review
The Registrar of Companies is now empowered to issue a Directive (K.D.P.) outlining procedures for administrative review and/or submission and examination of objections against decisions to impose financial penalties.
4. Deregistration of Non-Compliant Entities
The Registrar of Companies may deregister companies or other legal entities that fail to update their beneficial owners’ information. This process aligns with Article 327 of the Companies Law and subsection (5) of Article 57 of the Partnerships and Business Names Law.
5. Registrar’s Authority for Injunctive Orders
The Registrar of Companies is authorized to apply to the Court for injunctive orders compelling compliance with obligations under Article 61A of Law 188(I)/2007 and relevant guidelines.
Extension and Revocation of Financial Penalties
On December 16, 2024, the executive authority, in collaboration with the House of Representatives, issued Directive K.D.P. 423/2024 to extend the submission deadline for beneficial owners’ information until January 31, 2025.
Additionally, the deadline for confirming information for 2024 has been extended to March 31, 2025. From February 1, 2025, non-compliance will result in administrative and other penalties, as provided under Law 188(I)/2007 and its amendments.
The Department of Registrar of Companies and Official Receiver has also announced the revocation of financial penalties imposed from April 1, 2024, with refunds processed as follows:
