A new transparency obligation also applicable to INPOs
In order to combat money laundering and the financing of terrorism, a European directive has provided for the establishment in each Member State of a register containing detailed and precise information on beneficial owners, i.e. the natural persons who exercise control over both commercial companies and non-profit associations.
In Belgium, the register of beneficial owners (UBO) must be completed electronically by the legal representative of the association (or a proxy) since 2019. It is under the control of the Ministry of Finance.
Who should be included in the UBO register of the INPO?
The term UBO (or beneficial owner) refers to the persons who ultimately own or control the association. In the case of NPOs or INPOs, these are the following Belgian or foreign persons:
- The persons who are members of the Board of Directors;
- Persons who are authorised to represent the association;
- The persons in charge of the daily management;
- Any other natural person exercising ultimate control by other means.
All these data must be kept up to date. Any change of information must be reflected in the UBO register within one month. The information must also be confirmed annually.
What are the sanctions?
In case of infringement (lack of identification, incorrect or missing information, communication of changes outside the legal deadlines, etc.), administrative fines ranging from € 250 to € 50.000 will be imposed directly on the association's administrators. Criminal sanctions are also foreseen.
Our approach? A tailor-made solution for Non Profit organizations
Our firm offers a comprehensive legal service including :
- Collecting information on each beneficial owner (surname, first name, full address of residence, date on which he/she became a UBO, identification number in the national register or the equivalent abroad, copy of identity card or passport, etc.) in collaboration with the association;
- Assistance in setting up an appropriate electronic mandate, allowing access to the electronic register (note: there are special formalities, for which we will provide guidance, if the legal representative does not have a Belgian identity card);
- The constitution of the register;
- Updating the register in the event of a change of information during the year (e.g. in the event of a change of board of directors, secretary general or delegate for day-to-day management) as well as the mandatory annual update of the register.
The price for this comprehensive service is € 650 in the first year and € 350 in subsequent years (for one-off and annual updates).