The beneficials owners register and its new implications
In corporate law, the Beneficial Owners Register has existed since 2nd August 2017. However, an amendment was made by an order on 12th February 2020, which requires new companies to comply with this reporting obligation and makes the Beneficial Owner criminally liable.
This Beneficial Owners Register of legal entities was created in order to combat money laundering and the financing of terrorism.
Who is it for? Commercial companies, civil companies, G.I.E., and associations registered in the trade and companies register, collective investment schemes, associations, foundations, endowment funds and sustainability funds. All of the above must comply with this declaration.
What? Companies must declare and/or designate the natural person(s) who either directly or indirectly hold more than 25% of the company’s capital or voting rights, or who has any control over the company.
How do I do it? From now on, you must fill in the Cerfa 16062*01 form
Failure to file this document with the Trade and Companies Registry or filing it with inaccurate or incomplete information is punishable by six months’ imprisonment and a fine of 7,500 euros. Moreover, failure to send these documents may result in the applicant being refused registration of his /her company.
The new features of the plan by the ordinance of February 12, 2020:
- Expansion of the entities subject to the reporting obligation (addition of collective investment schemes, associations, foundations, endowment funds or perennial funds).
- Power of entities subject to the reporting obligation over beneficial owners and allocation of responsibility over the beneficial owner: Companies and entities are entitled to ask beneficial owners to provide the information necessary to comply with the reporting obligation. From the date of the request, the beneficial owner has 30 working days to provide the information,=. If they should fail to provide the information requested, Article L 574 of the Monetary and Financial Code states that they will be punished through 6 months imprisonment and a fine of 7,500 euros.
- Reporting discrepancies: There may be risks of concealment or discrepancies between the information transmitted and the truth. This information must be checked, and in the event of a discrepancy, the anomaly must be reported to the administrator of the commercial court (L 561-47-1 of the Monetary and Financial Code).
For more informations please contact our team [email protected]
We’ll be more than happy to help you!