Albania Adopts Amendments to Beneficial Ownership Registry Law
The Albanian Parliament has passed a law aimed at increasing transparency in beneficial ownership, effective from March 2nd. The new legislation introduces several changes to the existing Law no.112/2020 on Beneficial Owners Registry.
Key Amendments
- Simultaneous Registration of Ultimate Beneficial Owners (UBOs): Obliged entities, including companies and other legal structures, must register their UBOs simultaneously with the establishment of the entity.
- This applies to direct ownership structures, whereas entities with indirect ownership structures will have an additional 40-day period to reapply for UBO registration after an initial rejection.
Penalties for Non-Compliance
- Fines for Non-Registration: Obliged entities that fail to register their UBO data within the prescribed deadline will face fines of up to ALL 600,000 (approximately EUR 5,000).
- Fines for Failure to Update Changes: Those who fail to update changes in registered UBO data will be penalized with a fine of up to ALL 400,000 (approximately EUR 3,300).
Relief from Penalties
- Abolishment of Penalties for Legal Representatives: The law abolishes penalties for legal representatives of obliged entities if they fail to meet the requirements.
Transitional Provisions
- Extension of Initial Registration Deadline: Transitional provisions have been introduced to extend the initial registration deadline for obliged entities with indirect ownership structures. Those that have not registered their UBO by June 30th will be subject to a fine of up to ALL 400,000.
- Cancellation and Reimbursement of Penalties: The law provides for the cancellation and reimbursement of penalties paid before its effective date, provided that the obligations have been fulfilled.
Support from KPMG Albania
KPMG Albania is available to provide further guidance on these changes and assist with any queries or requirements.