Estonia has introduced updated regulation for declaring ultimate beneficial owners
18 June 2020 - On 21st February 2020, the Estonian Ultimate Beneficial Ownership (“UBO”) disclosure regulations were amended. From this, two key amendments should be taken into consideration in order to comply with the new rules:
- The members of the controlling company’s governing body must be registered as UBOs in the case where no UBO can be identified either in the Estonian or in the foreign parent company.
- Except when a natural person holds more than 25% ownership or control, the members of the parent company’s governing body must now be declared as UBOs. Under previous regulations, if no UBO could be identified, the Estonian subsidiaries registered the natural persons holding the position of a senior managing official as beneficial owners. It is sufficient for the Chairperson of the board of the parent company to be declared as UBO, if that company’s governing body comprises of more than four members.