In efforts to increase the effectiveness of anti-money laundering and counter-terrorism financing measures, accurate identification of beneficial owners—individuals or legal entities that ultimately control or benefit from a given business entity—plays a key role. In Poland, this task falls to the Central Register of Beneficial Owners (CRBR). However, for this register to effectively fulfill its functions, it is crucial that the information contained therein is current and accurate. In this context, the amendment to the Act on Combating Money Laundering and Terrorism Financing, introduced on November 10, 2022, introduced significant changes to the deadline for reporting data to the CRBR, from seven days to 14 days. The 14-day deadline is counted from the moment the entity is entered in the National Court Register or from the moment a change occurs.
The introduction of a new reporting period is intended to make it easier for entrepreneurs to comply with their obligation to report changes to the Central Register of Beneficial Owners (CRBR). In practice, the seven-day deadline has repeatedly proven insufficient, particularly in the case of more complex ownership structures. Obtaining a trusted or qualified signature by foreign representatives within the seven-day deadline has also proven problematic. By extending this deadline to 14 days, the amendment gives entities more time to provide precise and accurate information regarding beneficial owners.
Sanctions
However, despite the extension, it should be noted that failure to comply with the new reporting period may lead to severe consequences. Businesses who fail to make the required changes to the CRBR within 14 days may be subject to a fine of up to PLN 1 million.
It should also be mentioned that a fine of up to PLN 50,000 may also be imposed on the beneficial owner who has failed to fulfil the obligation to provide the company or other entity with the necessary information and documents to report data to the CRBR.
Who must report to CRBR?
It should be remembered that, pursuant to Article 58 of the Act on Counteracting Money Laundering and Terrorist Financing, all commercial companies, except public joint-stock companies, as well as trusts, European companies, cooperatives, associations and foundations, are obliged to report information on beneficial owners.
Companies that are in liquidation or bankruptcy are also obliged to report changes to their data and update them in the CRBR.
Summary
Extending the deadline from 7 days to 14 days gives businesses greater flexibility, allowing them to gather essential information about beneficial owners while maintaining strict penalties for late filing. If you encounter difficulties in submitting an update report to the Central Register of Registered Businesses (CRBR), our law firm supports commercial law companies in preparing such a report. We invite you to cooperate.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of October 4, 2023
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