Bulgaria: UBOs
Companies have until May 31, 2019 to register their beneficial owners in the Bulgarian Commercial Register and Register for Non-profit Legal Persons. This requirement stems from a new Law on measures against money laundering adopted in March 2018 (the “AML Law”).
WHO IS OBLIGATED UNDER THE AML LAW?
Legal persons and entities established in Bulgaria must obtain and maintain current information about their beneficial owners, including details on rights held. This data must be registered in the Commercial Register and BULSTAT Register.
Natural and legal persons acting as trustees for trusts, trust funds, and similar foreign legal entities must also obtain and maintain beneficial owner information, which must be registered in the BULSTAT Register.
WHAT KIND OF INFORMATION NEEDS TO BE REGISTERED?
The AML Law and amended Ordinance No 1 (effective October 23, 2018) specify required registration data. Companies must register legal entities that exercise direct or indirect control, personal data of beneficial owners, and contact information for persons permanently residing in Bulgaria (when applicable).
THE BENEFICIAL OWNER DEFINITION
The AML Law’s definition aligns with EU Directive 2015/849. A beneficial owner is “a natural person(s) who ultimately owns or controls a legal person or other legal entity.” Where beneficial owners cannot be established despite exhaustive efforts, senior management is deemed the beneficial owner.
REGISTRATION TERM AND FINES
The Bulgarian Registry Agency had until January 31, 2019 to enable registration. Companies have four months thereafter (until May 31, 2019) to enter required data. Non-compliance fines range from BGN 1,000 to BGN 10,000, with higher penalties (BGN 2,000 to BGN 20,000) for banks and financial institutions.