Registration of Ultimate Beneficial Owners (UBOs) and imposition of fines

Registration of Ultimate Beneficial Owners (UBOs) and imposition of fines

in Sep 12, 2023

The Department of the Registrar of Companies and Intellectual Property, in an announcement dated September 1, 2023, calls all companies registered under the Companies Act Cap. 113, European public limited companies (SE), partnerships, and their officers / partners to register their UBO details and information in the UBO register maintained by the Department, before September 30, 2023, to avoid facing financial penalties or potential criminal charges for non-compliance.

The Department has specified that, once the final solution is implemented, a one-month grace period will be granted for verifying and updating the information that has been previously recorded in the interim system and has now been transferred to the final one. During this period, requests for exemptions from information disclosure and due diligence procedure justification must also be submitted.

After the expiration of the one-month grace period, fines will be imposed automatically through the UBO electronic system for non-compliant entities. Regardless of criminal liability or prosecution of individuals, the non-compliant legal entity, along with its officers, may be fined €200 initially and an additional €100 for each day the violation persists, up to a maximum total fine of €20,000. It is important to note that legal entity officers will not be subject to financial penalties if they demonstrated due diligence in complying with the provisions of the applicable laws and regulations and the violation is not a result of their own act, omission or negligence.

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