On 27th January 2022, the Albanian Parliament adopted the Law no. 6/2022 on Amendments and supplements to the Law no.112/2020, on Beneficial Owners Registry (the “UBO Law”) (the “Amendments”). The Amendments are effective from 2 March 2022.
The Amendments aims to increase the number of the obliged entities that must be registered with the UBO register by extending the registration deadline, introducing the simultaneous registration of the Ultimate Beneficial Owner (UBO) along with the establishment of the obliged entity, increase of certain penalties in case of failure to comply with the legal requirements, etc. Below you may find a summary of some of the most important changes to the UBO Law.
Simultaneous registration of the entity and UBO
Pursuant to the Amendments, the registration of the UBO of an obliged entity shall be done simultaneously with the initial registration of the obliged entity with the commercial register in cases of a direct ownership structure.
In addition, the recently established entities with indirect ownership structure, for which the initial application for UBO registration is rejected, are entitled to file again the application within 40 days from the first application rejection date.
Increased penalties for obliged entities and removal of the penalty for administrator
The Amendments provide for increased penalties to the obliged entities for the following contravention cases:
- failure to register for the first time of the UBO data within 40 days upon the elapse of the 40 days period granted to obliged entities with indirect ownership structure shall be punishable with a penalty amounting to ALL 600,000 (approximately EUR 5,000);
- failure to register any changes of mandatorily registered data in the UBO register, shall be punishable with a penalty amounting to ALL 400,000 (approximately EUR 3,300).
The penalty amount for the abovementioned contraventions used to be ALL 250,000.
On the other hand, the amendments have abolished the penalty for legal representatives of obliged entities in case of failure to meet the UBO law requirements.
Transitory provisions for extension of initial registration deadline
Under the Amendments, the obliged entities with indirect ownership structure, which are already registered with the commercial register and at the effective date of the Amendments have not registered the UBO, must do so within 30 June 2022. Failure to meet this obligation shall be punishable with a penalty amounting to ALL 400,000.
For those entities with direct ownership which have been registered with the commercial register before the establishment of the UBO register and have not registered their UBO at the effective date of the Amendments, the National Business Centre shall transfer in the UBO register the UBO data.
Cancelation and reimbursement of the penalties
The penalties imposed before the effective date of the Amendments for nonfulfillment within the respective legal deadlines of the obligations provided by the UBO Law, which have not been paid before the Amendments effective date, are totally cancelled.
In addition, the obliged entities which before the effective date of the Amendments have paid the penalties as per the above paragraph and have also fulfilled the respective obligations for their UBO registration, are entitled to apply with National Business Centre for the reimbursement of the paid amounts.
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