The Central Register of Real Beneficiaries (hereinafter: “CRBR”) is a public register maintained by the Minister of Finance that contains information on real beneficiaries. The CRBR was established to counter money laundering and the financing of terrorism. On the other hand, due to its open and free nature, it also enables citizens to control economic transactions.
Who is the beneficial owner?
The definition of a beneficial owner can be found in Art. 2 paragraph. 2(1) of the Law of March 1, 2018. On anti-money laundering and financing of terrorism. In short, it is an individual or individuals who actually exercise authority over a business entity required to be registered with the CRBR. The exercise of power in a business entity, on the other hand, depends on certain legal circumstances. Commercial companies are assumed to be governed by individuals who own more than 25% of the shares or hold certain positions in its bodies.
What business entities are required to report information to the CRBR?
Business entities obliged to report information on beneficial owners and subsequently update it are listed in Art. 58 of the aforementioned law. According to the wording of this provision, these are:
- All commercial companies (i.e., general partnerships, limited partnerships, limited partnerships, limited joint-stock partnerships, limited liability companies, simple joint-stock companies, and joint-stock companies except public companies),
- Associations subject to registration in the National Court Register,
- cooperatives and European cooperatives,
- European companies,
- European economic interest groupings,
- some trusts.
When and how should the notification be made?
Both in the case of a newly established business entity and in the case of a change in the details of a business entity already reported to the CRBR, the deadline for notification is 14 days from the time the newly established entity is entered into the KRS or from the date of the change. The application can only be made by a person authorized to represent the entity. At the same time, it is responsible for the accuracy of the data provided under pain of criminal liability. The application itself is free of charge and is done only electronically through the CRBR website(https://www.podatki.gov.pl/crbr/). Failure to submit the notification by the deadline, on the other hand, can result in a fine of up to PLN 1 million for the operator.
If doubts arise on your side as to whether the business entity you are running is obliged to report information to the CRBR, or perhaps you are wondering whom to report and by what deadline, please feel free to contact us. We will be happy to support you in these matters. This will leave you with peace of mind that your affairs are in the right hands.
The author of the entry is trainee attorney Boris Ceglowski.