Art. 24 Reporting of discrepancies with information contained in beneficial ownership registers | Anti-money laundering regulation (AMLR) | AML

This article establishes the obligation for obliged entities to act as a quality-control mechanism for the central beneficial ownership registers.

When an obliged entity collects beneficial ownership information during its customer due diligence process (as required under Articles 20 and 22) and finds that it conflicts with what is recorded in the central register, it must report that discrepancy.

The article also provides a limited derogation for minor or easily explainable discrepancies, and carves out an exemption for legal professionals acting in their capacity to advise or represent clients in legal proceedings.

Important points:

Report discrepancies found between central register data and customer due diligence findings to the central register within 14 calendar days of detection, accompanied by your assessment of who the beneficial owners are and why.
You may hold off on reporting and instead seek clarification from the customer where the discrepancy is minor (e.g., a typographical error) or stems from outdated data with no grounds for suspicion — but this derogation does not apply in higher-risk situations, and if the customer fails to correct the register within 14 calendar days, you must report regardless.
Notaries, lawyers, independent legal professionals, auditors, accountants, and tax advisors are exempt from this article when acting in a legal advisory or representational capacity, except where they fall into the situations described in Article 21(2), second subparagraph.

1. Obliged entities shall report to the central registers any discrepancies they find between the information available in the central registers and the information they collect pursuant to Article 20(1), point (b), and Article 22(7).
2. The discrepancies referred to in the first subparagraph shall be reported without undue delay and, in any case, within 14 calendar days of their detection. When reporting such discrepancies, obliged entities shall accompany their reports with information they have obtained indicating the discrepancy and whom they consider to be the beneficial owners and, where applicable, the nominee shareholders and nominee directors to be and why.
1. By way of derogation from paragraph 1, obliged entities may refrain from reporting discrepancies to the central register and may instead request additional information from the customers where the discrepancies identified:
  1. are limited to typographical errors, different ways of transliteration, or minor inaccuracies that do not affect the identification of the beneficial owners or their position; or
  2. are a result of outdated data, but the beneficial owners are known to the obliged entity from another reliable source and there are no grounds for suspicion that there is an intention to conceal any information.
2. Where an obliged entity concludes that the beneficial ownership information in the central register is incorrect, it shall invite the customer to submit the correct information to the central register pursuant to Articles 63, 64 and 67 without undue delay, and, in any case, within 14 calendar days.
3. This paragraph shall not apply to cases of higher risk to which measures under Section 4 of this Chapter apply.
1. Where a customer has not submitted the correct information within the deadline referred to in paragraph 2, second subparagraph, the obliged entity shall report the discrepancy to the central register in accordance with paragraph 1, second subparagraph.
1. This Article shall not apply to notaries, lawyers, other independent legal professionals, auditors, external accountants and tax advisors in relation to information they receive from, or obtain on, a client, in the course of ascertaining the legal position of that client, or performing their task of defending or representing that client in, or concerning, judicial proceedings, including providing advice on instituting or avoiding such proceedings, regardless of whether such information is received or obtained before, during or after such proceedings.
2. However, the requirements of this Article shall apply when the obliged entities referred to in the first subparagraph of this paragraph provide legal advice in any of the situations covered by Article 21(2), second subparagraph.