The new Draft Law “On the Register of Beneficial Owners” aims to strengthen transparency regarding the ownership and control of legal entities by ensuring an accurate, up-to-date and accessible register of beneficial owners.
📌Expansion of entities subject to registration obligations Trade unions will be added among the entities.
📌 New deadlines for updating information
Entities will be required to register changes to beneficial ownership information within 28 calendar days from the date on which the change actually occurs.
📌 Greater scrutiny by the NBC Within 2 business days of receiving an application, the QKB may suspend the application and grant the entity 21 days to correct deficiencies preventing registration.
📌 New methods for identifying the beneficial owner The Draft Law provides more detailed rules for identifying the beneficial owner. Where, after exhausting all available means, it is not possible to identify a natural person as the beneficial owner, this fact must be registered, together with
the identification of the natural persons holding senior management positions within the entity’s decision-making or executive bodies.
📌 Possibility of restoration of a missed deadline
Where an entity, due to special circumstances beyond its control, has been unable to comply with the deadline for registering or updating beneficial ownership information, it may request restoration of the deadline. The request must be submitted within 30 days from the removal of the impediment, but no later than one year from the expiry of the missed deadline.
What should businesses do? Entities should ensure that their beneficial ownership information is accurate, complete and up to date, and that they maintain the necessary documentation to substantiate their ownership and control structure. In particular, businesses should monitor any changes to their ownership, control or management structure and comply with the new deadlines for registration and updating of information.
This material is for informational purposes only and is based on the proposed Draft Law.
