Here is the converted article in markdown format:
Beneficial Ownership Transparency in Spain: A Game-Changer for Anti-Money Laundering Efforts
The Spanish government has taken a significant step towards enhancing financial transparency and combating money laundering with the introduction of the Central Registry of Beneficial Ownership (CRBO). The CRBO, created by Royal Decree 609/2023, has been operational since September 19, 2023, and is set to revolutionize the way beneficial ownership information is collected and shared.
What is the CRBO?
The CRBO is a centralized registry that collects identification data of beneficial owners of Spanish legal entities and structures without their own separate legal entity. This includes companies, foundations, associations, trusts, and other types of entities formed under Spanish law or with domicile or branches in Spain.
Key Features of the CRBO
- Collects identification data of beneficial owners
- Operates through daily updates from competent registries (Companies Registers and Notaries')
- Connected to the central European platform via the BORIS system (Beneficial Ownership Registers Interconnection System)
Who Does the CRBO Collect Data From?
The CRBO will obtain its information through:
- Daily updates from Companies Registers
- Updates from Notaries'
- Connection to the central European platform via the BORIS system
What Data Does the CRBO Collect?
The CRBO collects identification data of beneficial owners, including:
Types of Entities Covered by the CRBO
- Spanish legal entities formed under Spanish law or with domicile or branches in Spain
- Entities and structures without their own separate legal entity that have actual seat management or activities in Spain
Who Can Access the CRBO Data?
Notaries public, registrars, national authorities from other EU member states, subject parties under Art. 2 of the Anti-Money Laundering and Terrorism Financing (AML-FT) Law, and entities with a legitimate interest can access the CRBO data upon payment of a fee.
What Are the Obligations for Obligated Entities to Update Information?
Key Deadlines
- First supplementary declaration: within 2 months from the entry into force of RD 609/2023
- Declaration of changes in beneficial ownership: within 10 days of becoming aware of the change
- Annual declaration: in January
Failure to comply with these obligations will result in legal entities being blocked at the Companies Register and subject to an administrative infringement.
What Does This Mean for Businesses?
The CRBO is a significant step towards greater transparency, but it also imposes additional tasks on businesses. Companies must now ensure that they have accurate beneficial ownership information and update their records accordingly. This will require a priority need to comply with the new regulations, especially when undertaking processes that may entail direct or indirect alterations in the composition of capital and control holders.
Conclusion
The CRBO is a game-changer for anti-money laundering efforts in Spain, but it also presents challenges for businesses. As the regulatory landscape continues to evolve, companies must prioritize compliance and ensure they have accurate beneficial ownership information to avoid reputational and financial risks.