Comparative Guide to UBO Registration in Central and Eastern Europe
Navigating the Ultimate Beneficial Owner (UBO) Registers in the CEE Region
A Practical Guide for Companies and Entrepreneurs
UBO registration in Central & Eastern Europe is complex, with each country applying different rules, deadlines, and sanctions. Our guide offers a clear overview of the key requirements to help companies stay compliant. For specific questions, our local experts are ready to assist.
Understanding Your UBO Registration Duties in Central & Eastern Europe
While the obligation to identify and register Ultimate Beneficial Owners (UBOs) stems from unified EU Anti-Money Laundering Directives with the UBO register being first introduced in EU Directive 2015/849 (4th AML Directive, its practical application across the Central and Eastern European (CEE) region is far from uniform. Businesses operating in multiple CEE countries face a complex patchwork of national laws where crucial details – from the precise definition of a UBO and registration deadlines to the severity of sanctions – can vary significantly. This constant evolution of legislation makes staying compliant a persistent challenge.
This guide is designed to provide a clear and concise overview of the UBO registration process in key CEE countries. It serves as a starting point for understanding your obligations, but given the significant local differences, we always recommend consulting with our local experts to ensure full compliance.
Country-Specific UBO Registration Requirements
ECOVIS has prepared a summary of UBO registration exemptions for the following countries. While this guide provides a solid foundation, national laws are subject to change, and we recommend consulting with our local experts for the most up-to-date information.
CEE Guide: UBO Registration, Requirements and Sanctions
In the list below, you will find links to detailed articles covering the UBO registration process, including key obligations, deadlines, and potential sanctions in selected CEE countries.
What is a UBO Register?
Across the European Union, member states have established central registers containing information about the ultimate beneficial owners of companies and other legal entities. The primary goal is to create transparency in corporate ownership structures to prevent misuse of legal entities for purposes like money laundering or terrorist financing. While the EU’s 4th (4AMLD), 5th (5AMLD) and recently the 6th (6AMLD) AML Directives harmonized the rules, the practical implementation, accessibility of the registers, and specific data required can still vary significantly between countries.
Who is an Ultimate Beneficial Owner?
An ultimate beneficial owner is always a natural person who ultimately owns or controls a legal entity or legal arrangement (such as a trust fund). A UBO can be identified based on two main criteria:
- Ultimate Beneficiary: A person who directly or indirectly holds more than a 25% share in the registered capital, has more than 25% of the voting rights, or is entitled to more than 25% of the profits, other own resources, or liquidation balance.
- Person with Ultimate Influence: A person who, regardless of their ownership stake, can exercise decisive influence over a legal entity, typically through control or by holding a dominant position.
If no UBO can be identified based on the criteria above, the members of the entity’s statutory body (e.g., the executives or directors) are registered as the UBOs.
Why is UBO Registration Crucial for Your Business?
Compliance with UBO regulations is not optional. National authorities are actively enforcing these rules, and penalties for non-compliance can be severe. These may include monetary fines, but also reputational damage or even limitations on the company’s ability to participate in public tenders or enter into certain business relationships. It is therefore essential to understand and fulfil your obligations in every country where you operate.
What are the Consequences of Non-Compliance?
Failing to correctly identify and register your UBOs, or failing to keep the information updated, can result in serious consequences. Sanctions vary by country but often include substantial financial penalties imposed on the company and its management. Furthermore, incorrect or missing entries in the register can complicate business operations, such as opening bank accounts, securing financing, or undergoing due diligence from business partners.
ECOVIS – your One-Stop Shop for UBO Compliance in the CEE Region
How to Manage UBO Registration in CEE Countries?
Given the potential consequences, we strongly recommend addressing your UBO registration duties with sufficient lead time and care. The complexity of identifying the UBO, especially in multi-layered ownership structures, and the administrative burden of the registration itself can be significant. We recommend managing your UBO compliance at least a few months before any deadline to avoid any issues.
If you need assistance with identifying your UBOs, completing the registration process, or have any additional questions, please do not hesitate to contact our ECOVIS offices. Our experts are ready to provide you with detailed information and hands-on support.
