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BENEFICIAL OWNER: RELIEF ON DECLARATIVE BUREAUCRACY

BENEFICIAL OWNER: RELIEF ON DECLARATIVE BUREAUCRACY

Last updated: 9 July 2020

The Law no. 129 from July 11, 2019 on the prevention and fight against money laundering and terrorist financing was subject to some important alteration aiming at easing excessive bureaucracy implemented at fist.

Here below, there is summary of the main modifications laid down by the Law no. 108/2020 published in the Official Gazette no. 588 of July 6, 2020 that entered into on July 9, 2020.

SIMPLER DECLARATIVE FORMALITIES

Yearly declaration of the beneficial owner removed

The new law removes the obligation, priory provided for by the Law no. 129 of July 11, 2019, for all entities subject to registration with the Trade Register, to produce a yearly statement on the beneficial owner. This obligation to declare the beneficial owner remains in force at the incorporation of such entities.

Previously, all these entities were bound to file a statement on the beneficial owner of the company with the Trade Register within 15 days since approval of the annual financial accounts. This yearly declarative obligation is from now on removed conditional upon that no change with respect to the beneficial owner occurs since the original submission.

New exemptees from the obligation to declare de beneficial owner

Another change brought by the new law regards the exemption of certain categories of persons from such obligation.

For the record, the Law no. 129 of July 11 2019 exempted from such obligation solely state owned entities.

The new law widens the category of entities exempted from the obligation to submit a statement on the beneficial owner, including therein legal persons formed exclusively by natural persons, when such persons are the only beneficial owners thereof.

However, the new legislative deed makes no mention on a prospective relief on the declarative formalities to be carried out by associations and foundations.
We shall see whether other normative acts to bring clarification on this matter as well shall follow.

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