CMS Expert Guide to the transparency register in AML directive

Transparency Register pursuant to the fourth European Money Laundering Directive – Status of Implementation in Selected EU Member States

The current legal basis of the Bulgarian Transparency Register is Chapter II, Part VI of the Bulgarian Anti-Money Laundering Measures Act (Закон за мерките срещу изпирането на пари) published in State Gazette Issue No 27/2018 on 27 March 2018, effective from 31 March 2018.

Further amendments implementing the Directive were promulgated in State Gazette Issue No 94 dated 29 November 2019.

Law 10/2010 of 28 April on the prevention of money laundering and the financing of terrorism (Ley 10/2010, de 28 de abril, de prevención del blanqueo de capitales y de la financiación del terrorismo). 

On September 2018, Law 10/2010 was urgently modified to implement the 4th Anti-Money Laundering Directive, in order to comply with the ultimatum of the European Union. Also Order JUS/319/2018 of 21 March was issued to create the Spanish Transparency Register (Registro de Titularidades Reales).

The Directive has not yet been implemented. It is currently being processed by the Spanish Parliament.

Only upon request.

The UBO is obliged to provide the legal entity with all documents and information required for the purposes of fulfilling transparency obligations upon request.  

No.

Yes.

There is an obligation for the legal entity to have and to keep adequate, accurate and up-to-date information on the identity of the UBO.

Yes.

Under the current Spanish legal regime, companies need to include information on the identity of their UBOs when filing the annual accounts with the Commercial Registry, information which is filed with the Transparency Register (Registro de Titularidades Reales).

When entering into business, the obligation to identify the UBO information currently lies with the counterparty (provided that it is an obliged entity according to Law 10/2010), and not the company itself.

The legal entity.

Legal entities are responsible for filing UBO information with the Transparency Register (Registro de Titularidades Reales) when filing their annual accounts.

The UBO is not obliged to make such filings.

5. Are there exemptions to the filing obligation?

Yes.

There is an exemption if the required information is already available in the relevant registers.

No.

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

1 February 2019 – 31 May 2019.

Yes, if there is a change in circumstances.

The filing shall be made annually when submitting the annual accounts to the Commercial Registry (in general terms, within 6-7 months as from the end of the financial year).

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

Fines range between EUR 250 and EUR 2,500 for responsible managers of a legal entity. Fines for legal entities range between EUR 500 and EUR 5,000.

Breach of the obligation to identify the UBO under Law 10/2010 may constitute a serious or minor infringement, entailing the following sanctions:

Serious infringements:

  • Fines from EUR 60,000 to the greater of: (i) 10% of annual turnover, (ii) amount of the transaction plus 50%, (iii) three times the benefits from the transaction, or (iv) EUR 5,000,000.
  • Public or private reprimand.
  • Withdrawal of authorisation to operate.

Minor infringements:

  • Fines of up to EUR 60,000.
  • Private reprimand. 

Serious infringements also include sanctions for the directors, from EUR 3,000 to EUR 10,000,000, reprimands and disqualification from office.

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

The Bulgarian Transparency Register is part of two existing public registers: the Commercial Register and the BULSTAT Register.

Although the Transparency Register has been created as a separate registry, it is linked to the Commercial Registry and is managed by the Registral Association (Colegio de Registradores) and therefore is strongly linked to the rest of the Spanish public registries.

Also, agreements have been signed for the use of the Transparency Register with the Court of Auditors, the Public Prosecutor's Office, the Guardia Civil, the National Police, the Bank of Spain, the National Securities Market Commission (CNMV), the General Council of the Judiciary (CGPJ) and other official bodies involved in the fight against money laundering.

9. Notable amendments (including through the Directive)

N/A

Not applicable as the Directive has so far not been implemented.