5th EU Money Laundering Directive and UBO Register Image

5th EU Money Laundering Directive and UBO Register

16 March 2020

The European Union’s 5th Money Laundering Directive (2018/843) amended the 4th Money Laundering Directive and was transposed into Gibraltar law through the Proceeds of Crime Act 2015 (Amendment) Regulations 2020 (5MLD Regulations), on 13th March 2020. The Regulations amended several pieces of legislation including the Register of Ultimate Beneficial Owners Regulations 2017 (RUBOR).

Adequate, accurate and current data

RUBOR now requires Ultimate Beneficial Owners (UBOs – typically clients of our firm) to provide information to the Registrar, which is adequate, accurate current and regarding the UBOs, including the details of the beneficial interests held. This information must be provided within 15 days of becoming a UBO.

Express trusts UBO data

The RUBOR has been amended to include trusts, including information on settlors, trusts, protectors, and beneficiaries.

Access to UBOs Register

Previously the RUBOR, provided for access to the UBO register to “a person or organisation that demonstrates a legitimate interest”, however, the amended RUBOR have replaced the aforementioned subsection with “a member of the public”. Members of the public can now therefore access information in respect of a UBO that includes, (i) the name, (ii) the month and year of birth, (iii) the nationality, (iv) the country of residence and (v) the nature and extent of the beneficial interest. This information is accessed through https://ubosearch.egov.gi/. Access to this information requires pre-registration and the payment of a fee amounting to £2.50 per search.

Duty to report inconsistencies

The Relevant Financial Business (RFB) must report to the Registrar within 30 days if the RFB finds information in the register which is materially inconsistent with information in its possession. This Regulation seeks to ensure the above-mentioned Regulation, which is to maintain adequate, accurate and current data in the Register.

5MLD measures for trusts

Legislative measures for trusts have been drafted but not implemented yet. We shall keep you updated on this once there have been any developments in these Regulations.

If you would like to gain a better understanding of the 5MLD Regulations, please contact our executives who you are in general contact with, however, if you are not a client and would like to know more, please contact us on enquiries@finsburytrust.com.


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