Further to our previous newsfeeds on this, the Prevention and Combating of Money Laundering (Amendment) (No. 2) Law of 2024 was published on 6 December 2024, introducing significant changes to obligations related to the Register of Beneficial Owners of Corporate and Other Legal Entities (UBO Register). These changes are summarised below.
Application of Penalties
The penalties for omission or neglection of submission or annual confirmation of information to the UBO Register will only be applicable to the entity itself. No penalties will be applied to the directors and company secretary of an entity.
However, a director of a company, which omits or neglects its obligations concerning the UBO Register, is jointly and/or severally liable with the company for the payment of the penalty imposed on the company.
Reduction of Penalties
The penalties have been revised as follows:
- €100 instead of €200;
- €50 instead of €100 for each day of continuation of the violation
The maximum total fine has been significantly reduced from €20,000 to €5,000.
Powers Granted to the Registrar of Companies
The Registrar of Companies (the “Registrar) has been granted the following powers:
- To strike off from the registry a company or other legal entity which failed to meet its UBO Register filing obligations.
- The authority to issue a Directive for the institutionalization of the administrative review procedure and/or the submission and examination of an objection against an imposed penalty.
- The authority to apply to the Court for the issuance of an injunction ordering the compliance of any person with the obligations arising from article 61A of the Prevention and Suppression of Money Laundering Activities Law 188(I)/2007 and the Directives issued thereunder, concerning identification of Beneficial Owners.
Extension of Deadlines for Submission and Confirmation
On 16 December 2024, the Registrar announced, through an amending directive, that an additional extension of the deadline for submission of data to the UBO Register is granted until 31 January 2025.
An extension has also been granted for the data confirmation process until 31 March 2025.
Withdrawal of Penalties
In addition, the Registrar has decided the withdrawal of all penalties imposed from 1 April 2024 and the refund of all amounts already paid.