Access to the UBO register limited to persons with a legitimate interest
09/03/23
The new Act of 8 February 2023 (published on 17 February 2023) brings the Belgian Anti-money Laundering Act in line with a recent judgment of the European Court of Justice (ECJ) in relation to the UBO register.
On 22 November the ECJ ruled that the principle of public access to the UBO register (i.e. that anyone can consult for example the name, nationality, year and month of birth, country of residence as well as the nature and extent of the interests of a UBO, without needing to demonstrate a legitimate interest) is invalid as such public access is disproportionate and not compatible with the right to respect for private life and the right to protection of personal data.
The ECJ is rightfully concerned that a person’s personal and financial information could potentially be consulted by an unlimited number of people and that this information could be subject to abuse.
Further to this ruling and the publication of the new Belgian legislation, the UBO register is no longer publicly available but is instead only accessible to private individuals and legal entities who can demonstrate a ‘legitimate interest’.
The Royal Decree of 8 February 2023 (published on 17 February 2023) states that the following private individuals or legal entities are assumed to have such a ‘legitimate interest’:
- persons who have a purpose or carry out activities in a sustainable and in an effective manner, related to the fight against money laundering, terrorist financing and related underlying criminal activities;
- persons who are acting in court within the context of the fight against money laundering, terrorist financing and related underlying criminal activities, with a view to defending an interest related to that purpose or activities; or
- persons who are due to enter into an economic relationship or carry out transactions with a subject entity and who are involved in activities relevant to the fight against money laundering, terrorist financing and related underlying criminal activities.
In other words, there must always be a link with the fight against money laundering, terrorist financing and related underlying criminal activities.
Feel free to contact us if you have any UBO related questions. We have the required experience in assisting companies and not-for-profit organisations with the identification of their UBOs, UBO registration as well as annual UBO confirmations.
