It is a new law - the Law on Central Register of Beneficial Owners and it is related to the issue of real owners of companies and obligations of submitting documentation and registration of such data. The law has been adopted in order to regulate the area of preventing money laundering and financing international terrorism and it came into effect on 08 June 2018.
In special cases, if it is not possible to determine a natural person in a proper manner, beneficial owner shall be considered a natural person being the registered representative.
This provision is related to...?
The obligation to determine beneficial owners and submit relevant documentation is imposed to your company/organization if you are a:
- legal entity,
- branch of a foreign company,
- business association and
- association (not related to political parties, unions, sports and religious associations) ,
- fund or trust,
- representative of a foreign company,
If the founder of a legal entity is the Republic of Serbia, autonomous province or a local government, this Law shall not apply.
There is still time to submit documentation to institutions.
Establishment of the Central Register of Beneficial Owners shall be done by the BRA. Electronic service for the application of such data into the register of BRA should start with registration on the site as of 01 January. After the establishment of the register, the company will have to submit data until 31 January 2019 at the latest.
The idea is to register electronically and to report any changes. This will be enabled through the use of electronic signature (certificate) of the legal representative.
The obligation of reporting beneficial owners should be taken seriously, because, in case it is determined that
on the beneficial owner, it shall be considered a criminal offence with a possible penalty of imprisonment from three months to five years.
Also, in case the beneficial owner is not registered within 15 days from the occurrence of the obligation of registration at the BRA site, pecuniary fine for such offence is threatened in the amount from RSD 500,000 to RSD 2,000,000 for the legal entity (registered subject) that is, from RSD 50,000 to RSD 150,000 for the responsible person of the registered subject.