NEWS in Serbian legislation – Central Register of Beneficial Owners

Newsletter 106

THE LAW ON CENTRAL REGISTER OF BENEFICIAL OWNERS HAS BEEN ADOPTED

The Republic of Serbia has in an urgent procedure adopted the Law on Central Register of Beneficial Owners following the recommendations of the Moneyval Committee of the Council of Europe, in accordance with the Directive EU 2015/849. This law entered into force on 08 June 2018.

The primary goal of this Law is to facilitate the conduct of activities and measures to prevent and detect money laundering and terrorist funding.

The Law introduces the obligation for legal entities and other registered subjects in the Republic of Serbia (hereinafter “Registered subjects”) to identify the beneficial owners and to ensure the relevant documentation, and after establishing the Central Register of Beneficial Owners with the Serbian Registers Agency – authorised/responsible persons in the Registered Subjects shall be obliged to file and record these data and documents in the Central Register.

I. Definition of Beneficial Owner

Who is considered to be a Beneficial Owner?

1. A natural person, who, directly or indirectly, holds 25% or more shares, voting rights or other rights, by virtue of which it participates in the management or the capital of the Registered Subject with 25% or more shares;
2. A natural person who directly or indirectly has a predominant influence on the conduct of business and decision-making;
3. A natural person who directly provides or secures funds to the Registered Subject and therefore has a significant influence on the decision-making of the Registered Subject’s management bodies when deciding on financing and business operations;