Amendment To The Register Of Beneficial Owners Regulations

Amendment To The Register Of Beneficial Owners Regulations

21 July 2020

The Companies Act (Register of Beneficial Owners)(Amendment) Regulations, 2020.

The directors of a company are obliged to report on the identity of the Ultimate Beneficial Ownership (UBO) of the company. This obligation has been in place since January 2018.

However, in view of the tightening of Anti Money Laundering legislation worldwide, the Government of Malta, with effect from 16^th June 2020, decided to increase the executive powers of the Malta Business Registry in order to ensure the country’s compliance with the international AML standards.

What will change with effect from 16^th June 2020? 

• The relative penalties for non-compliance (non-filing or erroneous filing) with the new Regulations have shot up to €5000 + €100/day.
• The ultimate sanction for continued non-compliance would be the striking off of the company, with its assets devolving upon the Maltese government.
• On an annual basis the directors need to submit a confirmation form stating that the following UBO details have or have not changed: Name, Identification document type and number, country of residence, extent of beneficial ownership.
• A certified copy of the new identification documents must be supplied to the MBR with every change to ensure that their records reflect the real beneficial ownership.

How can AE help? 

AE’s approach involves a dedicated team to offer both the legal advice and the company administration. Our Corporate Team is perfectly positioned to give you all the assistance you require to comply with the new Regulations avoiding the hefty penalties and ensuring that your company’s records are kept in good order. This results in a seamless business service that eliminates unnecessary costs and maximises on value and efficiency.