Italy Takes a Big Step Forward in Money Laundering Detection with the Establishment of UBO Register
A Crucial Step in Preventing Money Laundering and Terrorist Financing
Rome, June 2nd, 2022 - The Italian Ministry of Economy and Finance (MEF) has finally adopted the implementing decree establishing the national register of ultimate beneficial owners (UBO Register), a crucial step in preventing money laundering and terrorist financing.
What is the UBO Register?
The UBO Register is designed to provide a single national database on the beneficial ownership of corporations, private legal entities, trusts with tax-relevant legal effects, and similar institutions operating in Italy. The register will be interconnected with data communicated by obliged entities in other Member States, promoting transparency on ownership structures and combating opaque structures that can facilitate illegal activities.
Implementation Process
As part of the implementation process, certain entities in Italy are required to disclose data and information on ultimate beneficial ownership to a special section of the Register of Companies set up at each Chamber of Commerce. The UBO Register will be divided into two sections:
- One for companies and private legal entities
- Another for trusts and similar legal institutions
Who Must Disclose Beneficial Ownership Data?
The obligation to disclose beneficial ownership data and information applies to:
- Directors of all companies with legal personality
- Founders or representatives of private legal entities
- Trustees of trusts producing tax-relevant legal effects
Identification data and citizenship of the natural persons identified as ultimate beneficial owners must be disclosed, along with details on their extent of participation in the entity’s capital, control over the entity, or powers of representation, administration, or management.
Electronic Disclosure and Deadlines
Disclosure will be made electronically through a single communication form, and there are specific deadlines for reporting changes in ownership. Failure to disclose this information may result in financial penalties ranging from €103 to €1,032, with reduced penalties if reported within 30 days after the deadline expires.
Conclusion
The establishment of the UBO Register is a significant milestone in Italy’s efforts to prevent money laundering and terrorist financing, making it essential for all companies obliged by law to correctly identify and report information concerning their ultimate beneficial owners.