The Austrian register of beneficial owners - an overview
The register of beneficial owners is another instrument in the fight against money laundering and terrorist financing. According to the Beneficial Owners Register Act (WiEReG), companies, foundations and trusts are obliged to file information about their beneficial owners in this central register and - even more relevant in practice - to keep it up to date.
Here are the to-do's for companies at a glance:
Who is the beneficial owner?
In principle, any natural person who directly or indirectly holds more than 25% of the shares in a company is deemed to be the beneficial owner. In the case of more complex corporate structures, determining the beneficial owner can be quite challenging. Ultimately, the decisive factor is which natural persons exercise actual control over the company.
What data is recorded?
The following beneficial owner data is stored in the register:
- The full name and date of birth
- The nationality
- The current place of residence
- The nature and extent of the beneficial owner's interest in the company. In the case of multi-level structures, this also includes intermediate companies.
Obligations of the companies
- Companies are obliged to report the data of their beneficial owners electronically via the company service portal within four weeks of entry in the commercial register or other master register (e.g. register of associations).
- If the data changes, it must also be updated immediately.
- In addition, the data must be checked by the company at least once a year and updated if necessary.
All of this results in increased compliance costs and transparency of the ownership structure.
Those responsible should not take their obligations under the WiEReG lightly. Incorrect or incomplete information can lead to liability claims. Failure to comply with the obligations leads to (automatically imposed) fines and subsequently to the initiation of criminal financial proceedings.
