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Belgium Introduces New Law to Enhance Fight Against Dormant Companies and Shell Entities

The Belgian government has introduced a new law aimed at preventing the use of the financial system for money laundering and terrorist financing. This law includes the establishment of a register of beneficial owners (UBO Register), which is now mandatory for all companies and legal entities in Belgium.

What is the UBO Register?

The UBO Register is an online database where businesses must register their ultimate beneficial owners (UBOs). To comply with this law, businesses can log into the application on the MyMinfin portal to register their UBOs.

Striking Off of Shell and Dormant Entities

In a recent development, the UBO Register has reported that nearly 21,000 shell or dormant entities have been struck off due to non-compliance with their legal obligations relating to the UBO register. This is as a result of an amendment to the Code on Economic Law which came into force in December 2023.

Entities that failed to comply with the obligation to transmit information to the UBO Register and failed to publish anything in the Belgian Official Gazette for seven years, or those that failed to comply with the annual updating obligation of the register, have been struck off. The striking offs may limit an entity’s operations and relations with third parties, including banks.

New Features in the UBO Register

A legal representative can now assign up to five UBO mandates to third parties. This allows mandators to concurrently assign mandates to multiple mandatees to access or input information in the UBO Register.

The UBO Register has also published key figures on its website to provide customers with easier access to information and better meet their expectations. The register is accessible through the MyMinfin portal, but individuals without a Belgian authentication method can use the ForREG application to access it.

Contact Us

If you have any questions about registering and using the UBO Register or if you need help with the process, please contact us.