“...no later than 60 calendar days from the creation of the register, as determined by point 2 of this article...”replace with
“... as of June 30, 2021 ...”This normative act takes effect immediately and is published in the “Official Gazette.” The act also provides for other changes, such as extending the validity of documents of foreign origin to 90 days (from 1 month as provided by the current law), after complaints from foreign businesses that it was too short a timeframe for a foreign entity to obtain the necessary documentation in its country of origin, have it apostilled, officially translated into Albanian, and notarized. This extension comes as a result of numerous complaints from business associations that expressed concern about the problems they were facing in declaring beneficial owners, especially those who were foreign. 11 Chambers of Commerce and Business Associations, mostly foreign, sent a letter in early March to the Minister of Finance, Anila Denaj, two parliamentary commissions, and for the information of Prime Minister Edi Rama, requesting an extension of the deadline for declaring beneficial ownership information. The National Business Center (NBC) reports that in total there are about 55,000 entities (commercial entities and NGOs) that are required to register their beneficial owner. The penalty for non-compliance is 500,000 lek (approximately 4,000 euros). The obligation to make this declaration also applies to all entities or non-profit organizations that are inactive, with the exception of those that have been deregistered. The requirement to declare applies to more than just individuals. The Law on “Beneficial owner registration”, Which was a request from the European Mechanism Moneyval with the aim of combating money laundering, was approved in August 2020, while the directive regulating its operation was adopted in December 2020. The law, which aims to bring transparency to the shareholders of so-called offshore entities (with unknown owners) provided one month for the creation of the Register of Beneficial Owners (RPP), until January 31, a process carried out by the National Agency of Public Information (AKSHI). After the register is created, reporting entities have a 60-day deadline to register the beneficial owner(s). However, this process is facing numerous difficulties, from the platform's functionality to technical ambiguities regarding the beneficial owner of an NGO, the time required to secure documentation for foreign investors, identifying foreign companies listed on various stock exchanges, and even companies where the beneficial owner is not an individual but a foreign state. As a result, businesses have requested its postponement, especially since March also coincides with the submission of annual financial statements, adding to the burden on financiers. A beneficial owner, according to the law, is an individual who owns or ultimately controls, through direct or indirect ownership of 25% or more of: shares/quotas; equity participation; voting rights; or who benefits from transactions carried out by the entity on their behalf.
Normative Act for Law No. 112/2020
Normative Act FOR AMENDMENTS AND ADDITIONS TO LAW NO. 112/2020, “FOR THE REGISTER OF BENEFICIAL OWNERS” In support of Article 101 of the Constitution, on the proposal of the Minister of Finance and Economy, the Council of Ministers DECIDED: In law no. 112/2020, “For the beneficial owners register”, these changes and additions are made: Article 1 In letter “c” of point 2 of article 2, the words “...religious communities...” are replaced with the words “...religious congregations...”. Neni 2 In point 3.2.1 of article 4, the following changes and additions are made:Source: Monitor Magazine.
- The words “... permanent residence address ...” are replaced with “... place of residence address ...”.
“residential address.”. Article 3 In letter “b”, point 3, article 5, the words “... within 30 days ...” are replaced with “... within 90 days ...”. Article 4 In point 1 of Article 14, the words “... in point 5.1 ...” are replaced with “... in point 3.1 ...”. Article 5 In Article 15, the words “... no later than 60 calendar days from the creation of the register, as defined in point 2 of this article ...” are replaced with “... by June 30, 2021 ...”. Article 6 Entry into force This normative act enters into force immediately and is published in the Official Gazette.
- In letter “c”, after the paragraph “issue date and expiry date of the travel document”, a paragraph is added with the following content:
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