According to the 4th AML Directive ((EU) 2015/849 (MLD4)), all EU Member States are required to set up registers of beneficial owners which will gather and hold information on beneficial owners of corporate entities/trusts established under the law of a given country.
Registers are one of many changes introduced by the 4th AML Directive which aim to be a remedy for lack of transparency in the financial sector. The purpose of the Registers is to disclose data of natural persons who actually control corporate entities/trusts.
The 5th AML Directive extends beneficial ownership reporting and widens access to the central register of beneficial owners and must be implemented by Member States by 10 January 2020.
This summary is intended to provide a short practical overview of the different implementations regarding the central register of beneficial owners. Whilst the content of the 4th and 5th AML Directive is the same for all EU Member States, the result of implementation differs.
Beneficial ownership topics covered by the summary:
- definition of UBO (Ultimate Beneficial Ownership);
- entities obliged to report;
- information of the UBO subject disclosure;
- access to the Register;
- deadlines and penalties.