Financial Crime World

Italy Adopts New Rules to Fight Money Laundering and Terrorism Financing: The Ultimate Beneficial Owners Register Comes into Force

Introduction

On June 2, 2022, the Italian Ministry of Economy and Finance (MEF) adopted a crucial decree establishing the national register of ultimate beneficial owners (UBO Register). This significant step aims to prevent money laundering and terrorist financing by promoting transparency and combating opaque structures.

Key Features of the UBO Register

  • Single National Database: The UBO Register will contain information on the beneficial ownership of corporations, private legal entities, trusts with tax-relevant legal effects, and similar legal institutions operating in Italy.
  • Interconnection with EU Member States: The register will be interconnected with data communicated by obliged entities in other EU Member States.

Disclosure Obligations

  • Applicable Entities: Directors of companies with legal personality registered in the Register of Companies, founders or representatives of private legal entities, and trustees of trusts producing tax-relevant legal effects must disclose beneficial ownership data.
  • Disclosure Requirements: The communication must include identification data and citizenship of the natural persons identified as ultimate beneficial owners.
  • Electronic Disclosure: Disclosure must be made electronically through a single form, referred to as “Comunica”, within specific deadlines:
    • 60 days from the publication of the administrative act certifying the functioning of the communication system
    • 30 days after any change in ownership
    • Annually within 12 months of the first disclosure

Consequences of Non-Disclosure

  • Financial Penalties: Failure to disclose will result in financial penalties ranging from €103 to €1,032.

Conclusion

The establishment of the UBO Register makes correct identification and reporting of information concerning the ultimate beneficial owner essential for all companies obliged by law. The decree aims to promote transparency on ownership structures and combat money laundering and terrorist financing.