In relation with the implementation of the 5th AML directive, the Chamber of Deputies will deliberate a proposal of the Act on The Registration of Beneficial Owners (hereinafter referred to as the “Proposal"), it assumes its legal effects on the 1st December 2020. The Proposal provides the following changes.
Definition of beneficial owner
The Proposal contains its own definition of the beneficial owner, it is any natural person who is the end-recipient or who exercises the final influence.
If a beneficial owner of a corporation cannot be determined even when all the efforts that can be requested are made, the beneficial owner is any person in its senior management.
Automatic transcription to the Register of Beneficial Owners
Automatic transcription is a new way how to enter the beneficial owner in the register. If the beneficial owner's data can be read from a public administration system, this data will be automatically entered in the register.
Corrective proceedings
The court can correct the erroneous data in the register on a base of the irregularity proceedings. It commences ex-officio based on a notice from a public authority or obliged entities.
Penalties
A fine of up to CZK 50,000 may be issued to a registering person who does not procure the rectification of the beneficial owner's data even within a reasonable time.
A fine of up to CZK 250,000 may be issued in case the registering person enters erroneous or otherwise faulty data and subsequently does not ensure their rectification in compliance with a court decision in the corrective proceedings.
If the beneficial owner is not registered in the register, he cannot exercise his voting rights and corporation is prohibited from paying him a share of profits.
This article is not a legal advice. If you are interested in legal services, you can contact our office.
English 
Čeština