Due to the difficulties encountered during the implementation of Law 112/2020, the Ministry of Economy and Finance has proposed some changes in order to increase the number of declarations of beneficial owners by simplifying the registration procedures. The amendments were approved by Parliament on 27.01.2022.

The amendments relate to (i) the procedures and deadlines for registering beneficial owners (Article 5 and Article 6 of the Law), (ii) administrative offenses (Article 13 of the Law) and (iii) the extension of the deadline of registration the registration of the beneficial owner(s) for entities that have not yet fulfilled this obligation and to forgive the fines already imposed.

Initial registration of beneficial owners by reporting entities with direct ownership

In the event of initial registration of companies under direct ownership, the application for registration of the beneficial owner is submitted at the same time as 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 the service desks at the National Business Center.

Initial registration of beneficial owners by reporting entities with indirect ownership

In the event of initial registration of companies with indirect participation, the application for registration of the beneficial owner is filed simultaneously with the application for registration of the company in the commercial register. The application is filed with the service desks at the National Business Center.

The examination of the application for registration of the beneficial owner is carried out no later than two working days from the receipt of the application. If denied, the reporting entity must resubmit the request within 40 calendar days from the date of the denial.

Failure to register the beneficial owner(s) within 40 days is liable to a fine of ALL 50,000.

Failure to register the beneficial owner(s) within 40 days of the expiry of the period specified above is liable to a fine in the amount of ALL 600,000.

Initial registration of beneficial owners by non-profit organizations

In case of initial registration of non-profit organizations, the application for registration of beneficial owners must be submitted within 40 calendar days from the date of registration of the reporting entities as a legal entity.

Failure to register the beneficial owner(s) within 40 days is liable to a fine of ALL 50,000.

Failure to register the beneficial owner(s) within 40 days of the expiry of the period specified above is liable to a fine in the amount of ALL 600,000.

Registration of changes in the register of beneficial owners

In the event of registration of changes to the data of the beneficial owner(s), the request must be filed within 90 calendar days from the date of occurrence of the change.

Failure to register the change within the time specified above is liable to a fine of 400,000 ALL.

Suspension of the request

Upon receipt of the request, the National Business Center within two working days decides to suspend the request for initial registration, modify or update the data, giving the reporting entity a period of 30 ( thirty) calendar days in order to fill in the gaps that prevent registration. If the reporting entity does not close the gaps after the 30 day period has expired, 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, at the date of entry into force of these amendments, have not fulfilled the obligation of initial registration of beneficiaries effective or have not registered the changes in the register of beneficial owners, must fulfill these obligations no later than 30.06.2022.

Failure to comply with the above obligation before 30.06.2022 is punishable by a fine in the amount of ALL 400,000.

Remission of fines imposed and reimbursement of fines paid

All the sentences handed down before the entry into force of these modifications, which have not been paid, are pardoned up to 100%.

Reporting Entities which, prior to the effective date of these amendments, have paid the fines and fulfilled the relevant obligations for the registration of their beneficial owners, have the right to request the National Business Center to reimburse the sums paid .