Danish Parliament Strengthens Registration Requirements of Ultimate Beneficial Owners

Published 2 May 2019

PrintCategory: Corporate Regulation

On 2 May 2019, the Danish Parliament adopted amendments to the Danish Companies Act, which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.

The new rules make it mandatory for capital owners, and others with direct or indirect control, to provide the company with information necessary to identity their ultimate beneficial owners and further makes it mandatory for companies to supply this information to persons and companies which are required to carry out KYC procedures. Insufficient registrations or lack of documentation for the registrations (or lack of registrations) may be grounds for compulsory dissolution of the company. Further, companies are obligated to make a yearly assessment of whether there are any changes of the ultimate beneficial owners, the results of which are to be presented on the meeting where the central management approves of the annual report.

Next Steps: The new rules enter into force on 10 January 2020.

See the adopted act (in Danish) here.

Tags:  Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML


Also tagged ‘Beneficial Ownership’

13 Mar 2019Corporate RegulationFinancial Regulation

Proposal to Strengthen the Registration of Ultimate Beneficial Owners

On 13 March 2019, the Danish Government presented a proposal for an amendment of various acts including the Danish Companies Act which implements part of the 5th EU Anti-Money Laundering Directive concerning the registration of ultimate beneficial owners.

Beneficial OwnershipComplianceDanish RegulationDisclosure RequirementsKYC / AML
26 Feb 2019Taxation / VAT

EU Court of Justice Issues Ruling in Danish Beneficial Ownership Cases

The CJEU judgments will likely have a big impact on international group structures and will also contribute to the interpretation of the anti-abuse principles of EU law and the "beneficial owner" concept.

Beneficial OwnershipDanish Regulation

Other updates

10 May 2021Impact and ESGUpdates

Consultation on Sustainable Corporate Governance Initiative is Completed

On October 25, 2020, the European Commission launched, as a part of the EU Action Plan, a public consultation on a possible EU-level regulatory initiative dedicated to foster long-term sustainable and responsible corporate behavior as part of the Commission’s strategy to achieve carbon neutrality under the European Green Deal.

Sustainability
8 Mar 2021AIFsUpdates

ESA Publishes Joint Supervisory Statement on the Interpretation on Fund Managers’ ESG Disclosure Obligations

From 10 March 2021, fund managers are required to make certain ESG disclosures available on their website and in their pre-contractual disclosures to investors.

AIFMDComplianceDisclosure RequirementsSustainability
5 Jan 2021AIFsUpdates

ESMA Consults on Guidelines for Marketing Communications for Cross Border Distributions of AIFs

ESMA has launched a consultation on guidelines on marketing communications under the cross border distribution of funds regulation.

AIFMD
22 Dec 2020Taxation / VATUpdates

New Employee Share Scheme for Small New Companies (Startups)

As of 1 January 2021 a new employee share scheme applies. This new employee scheme entails that certain new and small companies can award employees with shares, options and warrants up to 50% of the employee's annual salary while the employee will be subject to taxation as share income (up to 42% taxation) instead of personal income (up to approx. 55% taxation).

6 Nov 2020Taxation / VATUpdates

Ruling on Taxation of SAFE

On 23 October 2020, the Danish Tax Agency published a ruling from the Danish National Tax Board regarding taxation of a SAFE (Simple Agreement for Future Equity) issuable by a US company.

Cross-BorderVenture Capital
4 Nov 2020AIFsUpdates

New Requirements to Marketing of Non-EU AIFS in Denmark

EU and non-EU AIFMs submitting an application for marketing of non-EU AIFs to professional investors in Denmark will be subject to new requirements. The Danish FSA has issued a new Executive Order, which enters into force on 1 January 2021.

AIFMD