Financial Crime World

Slovakia Enhances Transparency in Business Ownership

New Regulations Aim to Combat Money Laundering and Increase Accountability

In a significant move towards increasing transparency and combating money laundering, Slovakia has introduced regulations requiring companies registered in the country to disclose their ultimate beneficial owners (UBOs). This development is part of the country’s efforts to implement the 4th Anti-Money Laundering Directive in its legislation.

What are Ultimate Beneficial Owners (UBOs)?

  • A UBO is defined as a natural person who holds a direct or indirect share amounting to at least 25% of voting rights in an entity, has the right to appoint or recall statutory bodies or members of top management, controls the company through other means, or enjoys the right to participate in at least 25% of its profits.
  • This definition encompasses various scenarios where a natural person can significantly influence or benefit from a business.

Registration Obligations

Starting December 31st, all entities entered into the Slovak Commercial Register must provide identifying data on their UBOs. This includes new businesses registering with the commercial register. Failure to comply with this obligation may result in fines up to €3,310.

What Information Must Be Provided?

Registration requires companies to provide details on UBOs, including:

  • Name and surname
  • Permanent address
  • Birth identification number or date of birth
  • Citizenship
  • Type and number of relevant identity document
  • Information on the status of the UBO

Accessibility of UBO Data

Unlike other commercial register data, this information will not be publicly available. Only authorized public authorities, financial institutions, and certain qualified persons can access it.

Implementation and Compliance

Companies are advised to ensure they have sufficient internal records on file to verify the authenticity of the data entered regarding UBOs. The Slovak Commercial Register’s website provides specific forms for submission of registration applications, with no registration fee required.