Legal Update: The Council of Minister changes the validity term of supporting documents for the registration of Beneficial Owners
The Council of Ministers has approved on 12 May 2021 a decision that amends certain rules regarding the validity term of 30 days for the supporting documents filed by a company in respect of ultimate beneficial ownership registration with the Albanian UBO Register. This requirement in practice resulted difficult to fulfill especially for multinational companies that should collect simultaneously updated and apostilled commercial registry excerpts and documents from various jurisdictions within this short timeframe. As a result, many UBO declarations made by local entities during the last were refused by the UBO Register on formal grounds.
The amendment that was published in the Official Journal on 17 May 2021 provides that, the validity of all supporting documents filed by a reporting entity for the initial declaration of its UBO is 90 days (as opposed to the original 30 days) from their issue date. The same rule is applicable for companies that have made a declaration and must change their UBO i.e. the supporting documents filed by the reporting entity for changes to their UBO must be not older than 90 days (as opposed to 30 days) from their date of issuance.
The deadline for the declaration of UBO for companies existing at the time that the UBO law entered into force was already extended last March from 31 March 2021 to 30 June 2021. Companies that are newly registered in Albania should make the declaration of UBO within 30 days from the date of their registration with the Albanian Commercial Register. Non timely declaration of the UBO with the UBO Register by existing and newly registered company is associated with fines from 250 000 to 500 000 LEK.