Law “On the Registry of Beneficial Owners” | New Changes

On 27.01.2022 the Albanian Parliament approved the law no. 6/2022 “On amendments and additions to law no. 112/2020 “On the Registry of Beneficial Owners”, entering into force on 02.03.2022.

These amendments aim to simplify the registration procedures of the beneficial owners by reporting entities registered in the commercial register. Also, the law extends the deadlines for the initial registration of the beneficial owners by reporting entities. It also provides for the extension of the deadline for existing reporting entities that have not performed the registration of the beneficial owners before the entry into force of this law.  

Procedures and deadlines

The law provides that:

1. The initial registration of beneficial owners by reporting entities is performed simultaneously with the application for registration of the legal entity in the commercial register. The National Business Center (NBC) within 2 (two) working days from receipt of the application by the reporting entities, approves the registration of the beneficial owners when the criteria set by law are met.

2. In cases of rejection of application for the initial registration of beneficial owners by reporting entities with indirect ownership, the re-application with NBC should be filed within 40 (forty) calendar days from the date of rejection.

Failure to comply with registration of the beneficial owners within the above deadline by the reporting entities, is subject to a penalty in the amount of ALL 50.000.
Failure to register the beneficial owners by the reporting entities within 40 (forty) days after the deadline specified above has expired, is subject to a penalty in the amount of ALL 600,000.

3. Initial registration of beneficial owners by non-profit organizations should be performed within 40 (forty) calendar days from the date of registration of non-profit organizations as a legal entity.  

Failure to comply with registration of the beneficial owners within the above deadline by the reporting entities, is subject to a penalty in the amount of ALL 50.000.

Failure to register the beneficial owners by the reporting entities within 40 (forty) days after the deadline specified above has expired, is subject to a penalty in the amount of ALL 600,000.

4. Registration of changes in the data of the beneficial owners by reporting entities should be performed within 90 (ninety) calendar days from the date of occurrence of the change.

Failure to perform the registration of changes in the data of the beneficial owners within the above deadline by reporting entities, is subject to a penalty in the amount of ALL 400,000.

The decision imposing above penalties issued by NBC, can be appealed with the Administrative Court, in accordance with the Code of Administrative Procedures.

Initial registration of beneficial owners by the existing reporting entities

NBC in cooperation with the National Agency for Information Society shall within 30.06.2022 transfer to the beneficial owners Registry all existing reporting entities with direct ownership registered in the commercial register, which have not performed the registration of beneficial owners on the date of entry into force of this law.  

Whilst, the existing reporting entities with indirect ownership registered in the commercial register and Non-Profit Organizations register, which on the date of entry into force of this law have not performed the registration of beneficial owners, must perform such registration within 30.06.2022.

Failure to perform the registration of beneficial owners by reporting entities with indirect ownership within 30.06.2022, is subject to a penalty in the amount of ALL 400.000.

In addition, NBC and the competent authority for maintaining the register of Non-Profit Organizations will change from “active” to “passive” status activity of reporting entities that have not fulfilled the registration of the beneficial owners within the deadline specified above (i.e. 30.06.2022), until payment of the penalty and registration of their beneficial owners.  

Further, the law provides for cancellation of all penalties imposed before the entry into force of this law, which were not paid by the reporting entities. Reporting entities which have paid penalties and fulfilled the obligation for the registration of the beneficial owners, may claim reimbursement of penalties.

For additional information please feel free to contact us at the following:

setting@settinglaw.com