Romania’s Trade Registry (ONRC) announced that the registry of final beneficiaries of legal entities is up and running and local company managers have to declare by July 21 the real beneficiaries (individuals) of the companies they manage.

Thus, in the case of local companies that are officially controlled by other companies, the authorities are interested in knowing the individuals who control those companies, which many shareholders go through great lengths to hide by operating through offshore firms.

The requirement is part of Romania’s efforts to meet the anti-money laundering regulations imposed at EU level.

The companies must provide identification data for the real beneficiaries such as name, birth date, unique identification number (CNP, for Romanian individuals), series and number of the ID card, citizenship, and residence, according to the law. Companies must submit this declaration each year, 15 days after the approval of the annual financial report, and each time there’s a change in the shareholding structure.

Failure to comply with these requirements can lead to fines of RON 5,000-10,000 (some EUR 1,000-2,000) payable by the managers. If the companies fail to comply even after being fined, the court can order their dissolution.

The firms registered after July 21, 2019, have already declared their final beneficiaries. Those registered before that date have until July 21, 2020 to submit the declarations.

editor@romania-insider.com

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