Money Laundering and Terrorism Financing Prevention Act

Obligation to disclose data regarding beneficial owners

Kristel Tiits Kristel Tiits

From the 1st of September 2018, all Estonian companies will be required to submit data on their beneficial owners to the Commercial Register of Estonia.  The obligation must be fulfilled by 30th of October 2018. 

Beneficial owner is a natural person who owns a company directly or indirectly. Direct ownership is a manner of exercising control whereby a natural person holds a shareholding more than 25 per cent or an ownership interest of more than 25 per cent in a company. Indirect ownership is a manner of exercising control whereby a company, which is under the control of a natural person, holds or multiple companies which are under the control of the same natural person hold a shareholding more than 25 per cent or an ownership interest of more than 25 per cent in a company.

The management board of the company must submit the data regarding the beneficial owner to the Commercial Register by using e-portal or upon absence of ID-card and access to the e-portal, the Estonian Notary Public submits the required data in the e-notary system under application of the member of the management board of the company.

Following data on the beneficial owner is required to present:

1)      the person’s name,

2)      personal identification code and the country of the personal identification code (upon absence of a personal identification code, the date and place of birth), and the country of residence;

3)       nature of the beneficial interest held (directly or indirectly).

The obligation must be fulfilled by 31st of October 2018. Failure to submit data of the beneficial owner or submission of false information will result in a fine of up to 32,000 euros.

As a first step, the management board of the company must identify the beneficial owner of the company, after which the data on the beneficial owner can be submitted to the Commercial Register.

We can assist you to submit the data of the beneficial owners to the Commercial Register through an e-portal or a Notary Public and, if necessary, we can advise you on how to identify the company's beneficial owners whose data are subject to submission.

For further questions, please contact our advisers.

Kristel Tiits, kristel.tiits@ee.gt.com, +372 626 0500

Kärolin Rohumäe, karolin.rohumae@ee.gt.com, +372 626 0500