Poland Introduces Central Register of Beneficial Owners to Combat Money Laundering and Terrorist Financing
Poland has taken a significant step towards combating money laundering and terrorist financing by introducing a new system that requires companies to disclose their beneficial owners. The Central Register of Real Beneficiaries (CRBR), launched in October 2019, aims to provide accurate and up-to-date information on the real beneficiaries of Polish commercial entities.
Who is Required to Submit Data?
According to the law, the following types of companies are required to submit data to the register:
- General partnerships
- Limited partnerships
- Partnership limited by shares
- Limited liability companies
- Simple joint-stock companies
- Joint-stock companies
Additionally, natural persons who exercise control over a company through powers held or actual circumstances must also be reported.
Submission Requirements
The report must be submitted by an authorized representative of the company with:
- A Polish Trusted Profile (EPUAP)
- Qualified electronic signature
Foreign investors may face difficulties in submitting the report as they need to obtain a Polish Trusted Profile and qualified electronic signature, which requires a physical presence in Poland.
Deadline for Submission
Companies registered before October 13, 2019, must submit the report by April 13, 2020. Those established after that date have seven days from their registration to submit the report.
Consequences of Non-Compliance
Failure to comply with the obligation may result in fines of up to one million PLN. The person submitting the information and updating it is also liable for damage caused by reporting false data or failing to report changes within the statutory deadline. Representatives of Polish companies may also face criminal liability for making false declarations about the veracity of data entered into the register.
Definition of a Beneficial Owner
In Poland, a beneficial owner is defined as a natural person who exercises control over a company through powers held or actual circumstances, including:
- Holding more than 25% of the total number of shares or votes
- Exercising control over a legal person that holds more than 25% of the total number of shares or votes
Benefits of the Central Register of Real Beneficiaries
The introduction of the CRBR aims to increase transparency and ensure greater control over information, contributing to increasing confidence in the financial market and economic participants. By providing accurate and up-to-date information on beneficial owners, Poland is taking a significant step towards combating money laundering and terrorist financing.