Croatia: UBO Register deadline
In accordance with the 4th AML Directive, Croatia established an obligation for all locally incorporated legal entities, as well as trusts and equivalent foreign entities, to register their ultimate beneficial owner(s) with a newly created register.
What Is an Ultimate Beneficial Owner
An ultimate beneficial owner is a natural person who:
- “ultimately owns or controls the entity through (i) direct or (ii) indirect ownership of a sufficient percentage of shares, voting rights or ownership interest”
OR
- possesses controlling authority over entity assets via alternative methods, such as dominant influence or authority to appoint senior management
Only natural persons qualify as UBOs. Legal entities cannot be considered UBOs. When no natural person can be identified, those holding senior management positions become the ultimate beneficial owners.
Applicable Entities
The registration requirement applies to multiple entity types, including:
- Joint stock companies (excluding listed companies)
- Limited liability companies
- Limited and general partnerships
- Economic interest groupings
- Branch offices of foreign companies
- Institutions, associations and foundations
Special regulations govern UBO determinations for trusts and foreign entities.
Deadline
Existing entities and trusts must register UBO information by December 31, 2019. Foreign entities and those established after December 1, 2019 must register within 30 days of establishment. Subsequent UBO changes require 30-day reporting.
Noncompliance
“Failure to timely register UBO information may result in fines of up to HRK 350,000 (approx. EUR 47,000) for the obliged entity, and up to HRK 75,000 (approx. EUR 10,000) for its representative(s).” Enhanced penalties apply for more serious violations.