The Beneficial Ownership Register Act(WiEReG), which was promulgated on 15.9.2017 under Federal Law Gazette I 136/2017, establishes a register at the Federal Ministry of Finance in which the beneficial owners of companies, other legal entities and trusts are entered. This register is intended to make a significant contribution to the prevention of money laundering and terrorist financing. Lawyers, among others, will have access to the register. Access will be possible from May 2, 2018.
The notification of beneficial owners by legal entities (Section 5 WiEReg) must be submitted for the first time by June 1, 2018 . In the case of newly established companies, the data must be submitted within four weeks of the first entry in the commercial register or, in the case of trusts and trust-like agreements, after the establishment of administration in Austria. The data report must be submitted via the federal government’s company service portal. The register authority (BMF) is the client of the register under data protection law.
Anyone who intentionally violates the reporting obligation pursuant to § 5 WiReg is guilty of a financial offense and is liable to a fine of up to EUR 200,000.
Legal entities within the meaning of the WiEReG are the companies and other legal entities named in § 1 para. 2 with their registered office in Austria as well as trusts and trust-like agreements pursuant to § 1 para. 2 no. 17 and 18 WiEReG (including OG, KG, AG, GmbH, SE, private foundations, associations, purchasing and business cooperatives).
Essentially, all legal entities for which data on their beneficial owners is already available in the commercial register or the register of associations are exempt from reporting. This includes, in particular, general partnerships, limited partnerships and limited liability companies with only natural persons as shareholders, as well as commercial and economic cooperatives and associations.
Beneficial owners are all natural persons who ultimately own or control a legal entity. This is the case in the following circumstances:
– Shareholding/interest of more than 25% in the company is held by a natural person (direct beneficial owner)
– Shareholding/interest of more than 25% is held by a legal entity and a natural person exercises direct or indirect control over this legal entity (indirect beneficial owner)
– Voting rights to a sufficient extent are available to the natural person either directly or indirectly.
If it is not possible to identify a person in accordance with the above provisions, the natural persons who belong to the top management level must be reported as beneficial owners.
Every legal entity is entitled to view the data recorded about it in the register via the federal government’s company service portal. In addition to these authorized persons, “persons” who have due diligence obligations towards their clients to prevent money laundering and terrorist financing (lawyers, credit institutions, tax consultants, notaries) may also inspect the register. In addition, natural persons and legal entities with a legitimate interest are also entitled to apply for access to the beneficial owners of a specific legal entity.