📢AMENDMENTS OF PENALTIES FOR LATE UBO SUBMISSIONS

The amendment publication of the Law 141(I)/2024 introduces significant changes to the obligations related to the reporting of ultimate beneficial owners (UBOs) for companies, legal entities, and trusts. These changes are designed to ease the regulatory burden on businesses while maintaining transparency and accountability standards. 

1. Reduced penalties

The law introduces reduced penalties incurred by the company and/or other legal entity, when there is failure to comply with the reporting obligations of the UBOs.

A director or managing director of a company that refuses, omits, or neglects to fulfill its obligations to submit information regarding the UBOs shall be jointly and/or severally liable with the company for the payment of any financial penalty imposed on the company.

The Secretary is no longer liable and is excluded from any fines.

Penalties are now as follows:

• One hundred Euros (€100) plus:

  • For UBOs of Companies: a further fine of fifty Euros (€50) for each day of continuation of the violation with a maximum total fine of five thousand Euros (€5,000) 

  • For UBOs of legal entities other than companies: a further fine of fifty Euros (€50) for each day of continuation of the violation with a maximum total fine of two thousand Euros (€2,000) 

  • For UBOs of trusts: a further fine of fifty Euros (€50) for each day of continuation of the violation with a maximum total fine of five thousand Euros (€5,000) 

2. Notification Obligation of the Registrar of Companies

The law introduces a mandatory notification process to ensure entities and officers are aware of their obligations:

• The Registrar must notify each company or legal entity at least 30 days prior to the deadline for submitting or confirming the UBO information

• Notification is sent via registered mail or by letter to the Company’s/legal entity’s registered office and is deemed to be received three (3) working days after dispatch

  
  

This ensures that entities have ample time to prepare and comply with the reporting requirements.

3. Deregistration and Court Orders for Compliance

The Registrar of Companies now holds additional powers to enforce compliance:

• Companies or legal entities may be deleted from the Register for repeated non-compliance with the UBO reporting obligations

• The Registrar of Companies can seek a court order to compel compliance by individuals or entities

These measures highlight the seriousness of compliance with the UBO reporting requirements.

Implications and Recommended Actions for You

• Review and Update Your Records: Ensure that all Beneficial Ownership information in the Register is accurate and up to date

• Stay Informed: Stay vigilant and promptly address any correspondence or notifications from the Registrar of Companies to mitigate the risk of penalties or potential removal from the Register

• Seek Professional Assistance: Should you encounter compliance challenges, such as fines or discrepancies, our team is available to assist with objections, corrections, and penalty revocation processes

For more information, please do not hesitate to contact us at info@pelaghiaslaw.com