Update: On 3 July 2020, the President promulgated the Draft Law and the Law no. 108 dated 3 July 2020 on the amendment and supplementation of Law no. 129/2020 on the prevention and fight against money laundering and terrorism financing, as well as on the amendment and supplementation of certain regulatory acts was published in the Official Gazette no. 588 dated 6 July 2020.
On 10 June 2020, the Chamber of Deputies adopted the Draft Law for simplifying the procedure on the declaration of the beneficial owner of certain legal entities through the amendment and supplementation of Law no. 129/2019 on the prevention and fight against money laundering and terrorism financing, as well as on the amendment and supplementation of certain regulatory acts, as well as through the amendment of Government Ordinance no. 26/2000 on associations and foundations (the “Draft Law”).
1. Novelties brought by the Draft Law
The Draft Law stipulates the following:
- the legal entities whose shareholders are natural persons only, when they are the only beneficial owners, are no longer required to submit the declaration on the beneficial owner; in the case of these legal entities, the Trade Registry Office will complete ex officio the Register of beneficial owners of companies based on the documents accompanying the registration application or based on the records held in the case of companies that are already registered.
- by way of consequence, the obligation to submit the declaration on the beneficial owner by the legal entities whose shareholders are natural persons only, when they are the only beneficial owners, within the 12-month term from the entry into force of Law no. 129/2019 on the prevention and fight against money laundering and terrorism financing, as well as on the amendment and supplementation of certain regulatory acts, term which will soon expire (on 21 July 2020), is also removed.
- the removal of the obligation to submit an annual declaration on the beneficial owner, declaration which currently must be submitted within 15 days from the approval of the annual financial statements. The declaration must be however submitted when changes occur in relation to the identification data of the beneficial owner, within 15 days from the occurrence of such change.
2. Entry into force of the Draft Law
In order to enter into force, the Draft Law must be promulgated by the President and published in the Official Gazette of Romania. Currently, the Draft Law has been submitted to the Secretary General for the exercise of the right to file a non-constitutionality claim in relation to the law, and if no such claims are filed with the Constitutional Court, the draft law will be then submitted to the President of Romania for promulgation.
