Business owners’ records must be updated by April
Czech companies have time until 01/04/2023 to update their data on the register of beneficial owners. As indicated by the law firm BPV Braun Partners sro.
This is because since October the law amendment on the register of beneficial owners has been changing its requirements. In case of inconsistencies there is time until April 1st to update data, which if missing or incorrect can result in penalties of up to 500,000 Czech crowns, loss of voting and profit distribution rights. In addition, the notary may refuse to certify certain documents.
The purpose of this amendment is to align national legislation with European legislation. This is because the Czech Republic has seen the European Commission initiate proceedings against itself. Mainly regarding anti-money laundering, anti-fraud, and terrorism legislation.
The amendment includes the following changes:
- Changing the definition of beneficial owner. Now means the natural person who last owns or controls a legal person or legal device.
- Modification of the person to be registered in case the beneficial owner is not present. Such as political parties and movements, churches and religious societies, trade unions, associations, etc., which should be registered automatically.
Sources: https://www.bpv-bp.com/ ; https://www.camic.cz/
Source of images: https://ntplusfisco.ilsole24ore.com/ ; https://storyset.com/
