Financial Crime World

Italy Introduces Beneficial Ownership Determination: What You Need to Know

Overview

Italy has introduced new provisions for determining beneficial ownership in the country, effective June 9, 2022. The decree aims to enhance transparency and combat money laundering.

Register for Beneficial Ownership Information

The Companies Register at the territorially competent Chamber of Commerce will maintain a register for beneficial ownership information. Two separate sections have been created:

  • One for companies with legal status and private legal entities
  • Another for trusts and similar institutions

Obliged Parties and Reporting Requirements

Obliged parties, including:

  • Companies
  • Private legal entities
  • Trusts

are required to report beneficial ownership information to the register using a single communication form. The data must include:

  • Identification details of natural persons
  • Size of holding in the company’s capital (if applicable)
  • Tax code
  • Name of entity or institution
  • Registered office
  • Administrative office
  • Certified e-mail address
  • Any exceptional circumstances that may expose the beneficial owner to disproportionate risk

The parties responsible for reporting are:

  • Directors or founders for companies with legal status
  • Persons entrusted with representation and administration for private legal entities
  • Trustees for trusts

Electronic reporting will be enabled through a Single Company Communication form, which will be described in an executive decree by the Ministry of Economic Development (MISE).

Timeline for Reporting

Existing companies and obliged parties have 60 days from the publication of the MISE provision to make their first disclosure on beneficial ownership information. New entities must report this information within 30 days of registration or incorporation.

Annual Confirmation and Notifications of Changes

Annual confirmation of data and notifications of changes are also required.

Consequences of Non-Compliance

Failure to comply with these obligations may result in administrative fines ranging between €103 and €1,032, as per Article 2630 of the Italian Civil Code.

Purpose of the Decree

The decree aims to:

  • Improve transparency
  • Combat money laundering
  • Provide a more comprehensive understanding of beneficial ownership in Italy