The deadline for organizations to submit information on their ultimate beneficial owners in a new “Register of Ultimate Beneficial Ownership” to be maintained by the Croatian financial authority (FINA) is 31 December 2019. Failure to comply could result in penalties.
The rules relating to the ultimate beneficial ownership register were published in the official gazette No. 53/2019. The register has been established for the purpose of preventing the misuse of legal entities related to money laundering, including tax fraud, as well as to prevent terrorist financing and to increase the transparency and availability of ultimate beneficial ownership information. The register is a central, electronic location where information on the ultimate beneficial owners of all legal entities established on the territory of the Republic of Croatia, as well as the information on the ultimate beneficial owners of trusts and equivalent legal arrangements created under foreign laws and that have obtained an OIB number for the purpose of their business transactions in Croatia, are collected and stored.
The following legal entities are required to register their ultimate beneficial ownership information with the register:
Depending on the type of legal entity and complexity of its ownership structure, the information on ultimate beneficial ownership to be reported in the register may vary, but in general must include information on the nature and extent of ultimate beneficial ownership.
Read a 2019 report prepared by the KPMG member firm in Croatia
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