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Belgium

The transparency register in the 4th AML directive in Belgium

Table of contents
  1.  What is the current legal basis of the Transparency Register? To what extent has the Directive been implemented?
  2. Is there an obligation of a UBO or shareholder to proactively provide information on the UBO to the legal entity?
  3.  Is there an obligation of a legal entity to actively inquire with its shareholders / partners on the identity of the UBO(s)?
  4.  Who is required to make filings with the Transparency Register, the legal entity or the UBO?
  5.  Are there exemptions to the filing obligation?
  6.  What is the due date for the initial filing? Is there an obligation to update the filing?
  7. What are the sanctions in case of a breach of the transparency obligation?
  8.  Is the Transparency Register established as a separate register or part of an existing one?
  9.  Notable amendments (including through the Directive)
Belgium
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The current legal basis of the Belgian Transparency Register is the Act dated 18 September 2017 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and on the restriction of the use of cash, effective from 16 October 2017.

On 20 July 2020, the Belgian legislator amended this Act to fully implement the fifth Directive in Belgian law.

Note that the provisions of the Directive in relation to the Belgian Transparency Register (the “UBO Register”) were already largely implemented in Belgium through a Royal Decree dated 30 July 2018.

Yes.

Beneficial owners have to provide the legal entity with all the necessary information, on pain of a fine.

Yes.

Legal entities are obliged to collect and keep adequate, accurate and up-to-date information on their beneficial owners and their economic interests.

Such information should include at least the name, date of birth, citizenship, address of the beneficial owner and date on which they became the UBO, as well as the nature and extent of their respective economic interest.
If the UBO holds their interest via intermediary entities, the information also includes the number of intermediaries and, for each of them, their full identification.

If the legal entity identifies a difference between the information available in the UBO Register and the information it receives, it is required to amend the Register.

The administrative body of the legal entity.

5. Are there exemptions to the filing obligation?

Yes.

Listed companies are exempt from the obligation to identify their beneficial owners and register them in the Belgian Transparency Register.

Subsidiaries 100% owned, directly or indirectly, by a listed company are also exempt from this obligation. However, to be identified as being 100% owned by a listed company, these subsidiaries must register their ownership structure, including all intermediary entities, in the Belgian Transparency Register.

6. What is the due date for the initial filing? Is there an obligation to update the filing?

31 January 2019.

The information entered in the Belgian Transparency Register must be updated at least once a year.

Should this information change in the meantime, the administrative body of the legal entity must submit these changes to the Belgian Transparency Register within one month.

7. What are the sanctions in case of a breach of the transparency obligation?

If the legal entity fails to comply with these obligations, a criminal fine ranging from EUR 400 to EUR 40,000 may be imposed on the administrative body of the legal entity.

In addition, an administrative fine ranging from EUR 250 to EUR 50,000 may be imposed on the administrative body of the legal entity and on the beneficial owners who fail to provide the information needed by the legal entity.

8. Is the Transparency Register established as a separate register or part of an existing one?

The Belgian Transparency Register is established as a separate register called the UBO register ("le registre UBO/het UBO-register").

9. Notable amendments (including through the Directive)

Overall, the Royal Decree of 30 July 2018 on the operating modalities of the Belgian Transparency Register already largely implemented the Directive in Belgian law and has not been amended since its entry into force.

However, one notable amendment of implementation of the Directive is the obligation for beneficial owners to provide information on the UBO to the legal entity.