What is the UBO register?
The UBO register is a consequence of a European Directive and the resulting Belgian Act of 18 September 2017 on the prevention of money laundering and the financing of terrorism and on limiting the use of cash.
On this basis, the Royal Decree of 30 July 2018 came into effect on October 31, 2018, which regulates the modalities of the so-called UBO register. UBO stands for Ultimate Beneficial Owner.
In concrete terms, the FPS Finance has created a central register in which all companies must declare the identity of the “ultimate beneficiaries” of the company in order to prevent money laundering and the financing of terrorism. In this way, the competent authorities, such as the police services and the tax authorities, gain more insight into the companies, their owners and the cash flows.
Which sports club must complete the UBO register?
All legal entities, including companies, non-profit organisations and foundations, must complete the UBO register.
All sports clubs or sports federations that operate under the form of a non-profit organisation will have to complete the UBO register.
Larger sports organisations that work through a public limited company, such as a number of large football clubs, will also have to complete the UBO register.
What about the sports club as a de facto association?
Sports clubs that operate in the form of a de facto association do not have to complete the UBO register.
After all, de facto associations are not legal entities.
What must be completed?
The “beneficial owners” must be completed . More specifically, this concerns the following categories:
- The members of the Board of Directors;
- The persons authorised to represent the sports club or sports federation;
- The persons who exercise the daily management of the sports club or sports federation;
- The founders of a foundation (in principle this does not apply to a sports club/sports federation);
- The (category of) natural persons in whose interest the association was founded (for sports clubs or sports federations this may be indicated generally, e.g. all sports participants of the sports club);
- Any other natural person who has ultimate control over the sports club or sports federation through other means.
For these persons, the surname, first name, date of birth, nationality, place of residence, national register number, the date on which one became the “ultimate beneficiary” and the UBO category (see above) must be completed.
How does the sports club report?
The declaration is made via the website of the FPS Finance (https://eservices.minfin.fgov.be/myminfin-web/).
Have your company number at hand for this.
The FPS Finance has a specific manual and video regarding the NPO: Manual: https://financien.belgium.be/sites/default/files/Wettelijke_Vertegeniger_VZW_0.pdf
Video: https://www.youtube.com/watch?time_continue=3&v=xv5rwG1W8jA
What is the final deadline?
Theoretically, the declaration must be submitted via the platform of the FPS Finance no later than September 30, 2019 to have been implemented.
It is therefore recommended to adhere to this date.
However, the FPS Finance has indicated that it will pursue a form of tolerance policy until the end of 2019.
This means that the declaration must be made, but that if this has not yet been done, no sanctions will be imposed.
What are the consequences if the sports club takes no action?
Sports clubs and sports federations that do not complete the UBO register despite their obligation to do so risk a fine of EUR 250.00 to EUR 50,000.00.
Filling in incorrectly can also lead to fines.
Keeping the registration current
The obligation does not end once the first registration is filed. Every change in the persons concerned has to be reported within the period the legislation sets, and the information has to be confirmed at least once a year even where nothing has changed. A board that treats the register as a one-off formality is the board that discovers the omission during a bank check or a subsidy file. Put the yearly confirmation in the calendar next to the approval of the annual accounts, and the obligation looks after itself.
Further questions? Do not hesitate to contact us on 09/334.94.70, via contact form or via sport@everest-law.be.
Keeping the UBO register up to date
The duty does not end with the first filing. Every change in the persons who qualify as beneficial owners, and every change in their details, has to be reported within the period the rules set. Boards turn over more often in sport than in most sectors, so put the register on the agenda of the meeting that appoints a new board, alongside the filing of the appointment itself. A periodic confirmation is required as well, and that is the step most often forgotten, precisely because nothing appears to have changed.