On December 23, 2019, the Italian Ministry of the Economy and Finance published on its web site a draft of the Ministerial Decree setting forth the provisions for the establishment and operation of the Register of Beneficial Owners of business entities, non-commercial entities and trusts. The establishment of the Register of Beneficial Owners is required by article 21 of the Legislative Decree n. 231 of November 21, 2007, which contains the domestic legislation implementing the European Union Anti Money Laundering Directives into Italian law. The draft Decree is open to public discussion, and comments and observations can be submitted through the Ministry’s web site until February 28, 2020. The final decree will be published and enter into force within July 3, 2020
In an article published on Tax Notes International on January 20, 2020 (Preparing for Italy’s Beneficial Ownership Register, Tax Notes International, January 20, 2020) we provide and analysis of the proposed rules.
The new beneficial owners’ filing obligations will apply to commercial entities, private non commercial organizations, trusts, foundations and other fiduciary arrangements. They will require disclosure of information on directors, managers, trustees, administrators and entity’s ultimate owners.
Members of the public can have access to the information filed with the register provided that they have standing, meaning, upon showing that they have a direct, present and ascertainable legal interest, right or claim the pursuance of which requires access to the information.
Individuals classified as beneficials owners and subject to the disclosure can preemptively object to the filing of their personal information on the ground that disclosure would expose them to an excess risk of threat, kidnapping, blackmailing, and similar dangers.
The new filing obligations will pose significant challenges and require specific attention on part of entities and individuals falling within the scope of the rules.