29
Fri, Mar
50 New Articles

The New Ultimate Beneficial Owner Register is Coming

The New Ultimate Beneficial Owner Register is Coming

Hungary
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Based on a bill submitted on 20 April 2021, the new law establishing the ultimate beneficial owner register (UBO) may enter into force on 15 May 2021. According to the bill, the UBO will be based on data obtained by banks in the course of the customer due diligence under the Hungarian Anti Money Laundering Act (AML Act), which data will be passed on to the body maintaining the UBO (i.e. the Hungarian tax authority). After the system is set up, each organization involved will receive a registration number and a TT index.

The TT index evaluates the organizations based on their reliability, which will be 10 points at the time of the first data recording. However, this value may change (decrease) when the authority maintaining the UBO detects discrepancy from the data at UBO on the basis of the information passed on by another authority or service provider pursuant to AML Act. If the TT index of an organization falls below 8 points, its status becomes “unstable”, and when it falls below 6 points, it becomes “unreliable”. In both cases, it is possible to return to “reliable” status (i.e. regain the 10 points) by changing or confirming the data within the statutory deadline. The “unreliable” status will have certain disadvantages, such as publishing the name of these organizations by the Hungarian Tax Authority, or service providers will consider them as high risk organizations and refuse to carry out transactions over HUF 4.5 million.

The organizations will be entitled to access and reconcile their own data.

By Gabriella Galik, Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com