Finnish entities are required to submit a notification of their UBO by 1st July 2020

18 June 2020 - In Finland, the Act on Combating Money Laundering and Terrorism Financing came into effect on 1st January 2019. It now requires that all private commercial legal entities registered in Finland provide information of their Ultimate Beneficial Owners ("UBO") to the Finnish Patent and Registration Office. Entities incorporated before 1st July 2019 must do so by 1st July 2020. Entities incorporated after 1st July 2020 must to so at the time of registration of the company

The Act defines UBO as a natural person who owns, directly or indirectly, more than 25% of the shares of a company or holds more than 25 % of the voting rights. If a UBO cannot be identified, the company’s management is regarded as the UBO and it must notify to the Patent and Registration Office.

Failure to comply with these requirements may result in penalties or fines ranging between EUR 5,000 and EUR 100,000 for a legal person and between EUR 500 and EUR 10,000 for natural persons. Repeated violations of these requirements are subject to additional fines up to EUR 1 million or twice the amount of the benefit (whichever is larger) for companies and up to 10% of the turnover in the previous year or EUR 5 million (whichever is larger) for credit and financial institutions.

Information provided to the Finnish Patent and Registration Office under this new legislation is not available to the general public; however, certain third-parties may request and obtain relevant details in accordance with and for the specific purposes set out in the Act.

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