Slovakia Takes Steps towards Beneficial Ownership Transparency

The Slovak Republic has introduced new regulations requiring companies registered in the country to disclose their ultimate beneficial owners (UBOs) as part of efforts to increase transparency and prevent money laundering. The move brings Slovakia in line with European Union directives aimed at combating financial crime.

What are Ultimate Beneficial Owners?

A UBO is defined as a natural person who exercises material control over the way in which a legal entity operates, either directly or indirectly, through ownership, control, participation in profits, or other means. This includes individuals who hold a direct or indirect share of at least 25% of the voting rights in an entity, or a share of at least 25% of its registered capital.

Key Requirements for Registering UBOs

• All legal entities entered in the Slovak Commercial Register are required to register their UBOs by December 31, 2019, or upon registration for new entities.

• The following information must be provided for each UBO:

  • Name and surname
  • Address of permanent residence
  • Birth identification number (or date of birth if not assigned)
  • Citizenship
  • Type and number of relevant identity document (e.g., ID card or passport)

Limited Public Access to UBO Information

Information on UBOs will not be publicly available. Instead, it will be accessible only to certain public authorities, financial institutions, and other subjects listed by law, such as courts, law enforcement agencies, and specialized subjects.

Consequences of Non-Compliance

• Failure to comply with the registration obligation can result in fines of up to EUR 3,310 imposed on the company’s statutory body.
• Companies must keep internal records regarding their UBOs, failing which they may face fines of up to EUR 200,000.

The introduction of beneficial ownership transparency regulations is a significant step towards combating financial crime and increasing trust in the business environment in Slovakia.