The Economic Beneficial Owner Register Act

The Economic Property Owners Register Act (WiEReG) was adopted by the National Council at the end of June and approved by the Federal Council in early July. The law sets out essential parts of the 4th Anti-Money Laundering Directive implemented, which is aimed at Prevention of money laundering and Tax evasion the mandatory introduction of a nationwide Registers of economic owners provides for. In the register - the register authority is established with the BMF - are the economic owner to be registered by companies (thus also by complex corporate structures), other legal entities, and certain trusts. As Starting point It serves the purpose of the statistics operated by Statistik Austria Company register, in which the data for Company books, Association registers and the supplementary register for other affected persons is included. Basically, everyone (Austrian) or relevant Legal entity self-obligated, the necessary Data to the registration authority Report. It is assumed that the (Austrian) register is around 350,000 legal entities It includes - in addition to AGs and GmbHs - for example, limited liability companies, savings banks, associations under the Association Act, private foundations, and trusts administered from within the country. Key points The WiEReG are presented below.

Report

In accordance with the definition in the WiEReG, the Legal entity self her(s) identify and verify economic owners. The data is reported electronically about that Business Services Portal (https://www.usp.gv.at/) and includes first and last name, place of residence, date and place of birth, as well as nationality. The report can also be submitted by Party representatives as done by tax advisors, lawyers, etc. The First report has up to No later than June 1, 2018 to be done. Thereafter, new legal entities must report within four weeks after registration in the corresponding central register (e.g. the company register), or similarly inside from four weeks after Knowledge of a Change of economic owner. To her Duty of care To be fair, the legal entities must at least review annually, Whether it is registered with the register the reported economic owner is still current is. The WiEReG also Reliefs before the reporting obligation. Under certain conditions, the information already present, e.g. in the company register, is used to determine the economic owner and the Data supported by automation in the register taken over.

Economic owner

At the economic owners under the Register Act is it an independent entity Definition from the 4th Money Laundering Directive, which must not correspond to the concept of the economic owner in tax law. The economic owner can always only one Natural person his, in whose Property or under whose Control an entity ultimately holds the legal right. In the case of Companies The economic owner is typically characterized by having a sufficient share of shares or a sufficient participation has, through sufficient voting rights, held a share in the company, or Control to the management of the company exercise can. In the end, they can natural persons directly or indirectly (Participation in one or more levels of society) economic owners to be.

Access to information

In addition to certain individuals, anyone with access to the register has the right to Authorities Also Professional groups, which Special requirements in terms of their Duty of care to prevent money laundering and terrorist financing towards their customers are subject to. These include, for example, banks and insurance companies, lawyers, notaries, auditors, tax advisors, business consultants, insurance brokers, etc. In addition, any other person may submit an application for access if one of the following applies: legitimate interest is present.

Criminal regulations

So that one Maximum possible reporting rate are ensured, are in addition to mandatory penalties According to the BAO, high penalties are provided for failure to report. Incorrect, incomplete or negligent reporting constitutes a Financial offences and can be used in Intention one Maximum penalty from up to 200.000 € to follow (in the case of gross negligence up to €100,000In addition, Trusts, which cannot be entered in the register, thereby being penalized by the fact that they cannot establish new business relationships, and no new bank connections can open. This is because the business partner is proven beforehand must ensure that the trust is registered in the register. After all, the intentional unauthorized access in the register with one Fines up to €10,000 punished.

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