Important Update on Company Beneficial Owner Registry Fines

We would like to inform you of a significant decision made by the Parliamentary Committee on Trade regarding the fines imposed for non-compliance with the obligation to update the Company Beneficial Owner Registry (UBO Registry). The committee has decided to annul all fines imposed up to this date, which amount to approximately €14 million. In their place, a flat, one-time fine of €200-€250 will be applied to all companies that failed to timely report their beneficial owners in the electronic registry of the Registrar of Companies.

This new measure will cover all responsible parties within a company, including the legal entity, directors, and secretaries. This is a much more favorable outcome compared to the hefty fines imposed previously, and it aims to provide relief to non-compliant companies.

Looking ahead, the committee also discussed reducing future fines. Currently, the legislation imposes fines up to €20,000 annually for non-compliance. However, the proposed changes would reduce this range to between €2,000 and €10,000 annually, depending on the case.

This important development will relieve the financial burden on many businesses, while still ensuring compliance with the UBO reporting obligations. The relevant legislation is expected to be finalized by March 2025, with further updates provided as the situation progresses.

We encourage you to take this opportunity to ensure that your company is compliant with the UBO reporting requirements to avoid any future penalties.

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