Romania: Companies must now declare UBOs
Romania has recently introduced an obligation requiring the declaration of beneficial owners for registration purposes. Failure to comply can result in fines up to RON 10,000 (approximately 2,500 euros).
When does the statement need to be filed?
A written statement for registration in the Central Register of Beneficial Owners of Private Companies must be filed:
- upon incorporation of a new company (already required as part of the incorporation file with the Trade Registry)
- on a yearly basis
- whenever a change in the company occurs
As of July 21, 2020, companies already registered in the Trade Registry need to file a statement indicating their beneficial owners.
Who needs to comply
The company’s legal representative is responsible for ensuring the statement is filed. Failure to comply constitutes a minor offense, sanctioned with fines ranging from RON 5,000 to 10,000 (approximately 1,040 to 2,080 euros).
If the legal representative fails to file the statement within 30 days of when the fine is applied, the company may be wound up.
While the Trade Registry does not have a unified practice requiring existing companies to file beneficial owners’ statements whenever changes occur, representatives are advised to strive to comply with this legal obligation.
Thoughts
As compliance requirements become more stringent in 2020, disclosure of ultimate beneficiaries represents a critical compliance issue for clients moving forward.