On the 21st of November, the Parliament approved the amendment of the Prevention and Combating of Money Laundering Law of 2007 L.(188(I)2007). The proposed change, among other things, involves the reduction of the monetary levels of the financial penalties that will be imposed to companies and other legal entities that fail to comply with the obligation to register their Ultimate Beneficial Owners (UBOs) within the given deadline. 

Retrospective effect on already imposed fines

A critical update concerns the already imposed fines on non-complicit entities. The Department of Registrar of Companies and Intellectual Property will proceed with the revocation of all such measures; more specifically the deletion of penalties for legal entities that have failed to comply with the relevant regulations up to now. 

The financial penalties moving forward

With regard to how the amendment affects future fines, there are three main points to highlight. First and foremost, the bill alters both the daily and total amount of fines that can be imposed, capping both numbers at much lower levels than previously. The daily fine has been reduced from €100 to €30 per day of non-compliance, while the maximum total fine for each legal entity has now been limited to €5,000; a major change from the previous ceiling of €20,000. 

Lastly, the bill also enables the non-complicit party to submit an appeal upon the decision of the court to enforce the financial penalties. 

The recent developments - although beneficial to those that have been affected -  are not meant to undermine the need for compliance with the UBO regulations.  All companies and other legal entities are still obliged and should be ready to be able to register their Ultimate Beneficial Owners in the UBO register by the end of the year.