New: Obligation to report to the transparency register and discontinuation of the so-called notification fiction
In its session yesterday, June 10, 2021, the Bundestag passed the Transparency Register and Financial Information Act (TraFinG) and thus the elimination of the notification fiction.
According to § 20 para. 1 sentence 1 AMLA, legal entities under private law, registered partnerships trust and comparable legal entities have been obliged to report their beneficial owner(s) to the transparency register since 2017.
Up to now, many companies have been able to rely on the notification fiction of Section 20 para. 2 GwG, according to which the obligation to report to the transparency register does not apply if the information on the beneficial owner can be found in other registers (in particular the commercial register, but also the register of cooperatives and associations).
In contrast, the bill that has now been passed provides for a conversion of the transparency register from a catch-all register to a full register – to this end, the notification fiction will be abolished.
All legal entities are henceforth obliged not only to identify their beneficial owner, but to positively notify the Transparency Register for registration. The legal entities are thus responsible for the accuracy and timeliness of the data, and this responsibility is flanked by a corresponding fine.
Depending on the legal form, the legal entities affected by the discontinuation of the notification fiction are granted different deadlines. The persons appointed in accordance with § 19 para. 1 GwG must therefore be submitted to the register-keeping office (Federal Office of Administration) by no later than
– March 31, 2022 (AG, SE, partnership limited by shares),
– June 30, 2022 (limited liability company, cooperative, European cooperative or partnership),
– December 31, 2022 (in all other cases),
be communicated.
Transparency Register Tool from KPMG Law
KPMG Law has therefore developed a digital web-based tool that reduces the organizational effort for our clients in reporting to the Transparency Register as much as possible. The aim is to relieve companies of as much compliance work as possible so that they can focus on their day-to-day business.
Contact us if you have any questions – we will be happy to assist you in making the report and introduce you to our tool.
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