The Author of the Article
Transparency obligations that also apply to international non-profit associations
In order to counter money laundering and the financing of terrorism, a European directive has stipulated that each Member State must set up 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 Ultimate Beneficial Owner (UBO) register must be completed electronically by the association's legal representative or a proxy, and is supervised by the Ministry of Finance.
Who must be listed in the NPO's UBO register?
The term UBO (or beneficial owner) refers to the persons who ultimately own or control the association. In the case of NPOs, the following Belgian or foreign persons must be identified cumulatively:
- Members of the Board of Directors;
- Persons authorized to represent the association;
- Persons responsible for day-to-day management;
- Any other natural person exercising ultimate control by other means.
Any change of information must be reflected in the UBO register within one month. NPO must therefore update its UBO register whenever a change is made to its Board of Directors (resignation, appointment, etc.).
The information must also be confirmed annually.
Information to be provided
For each individual included in the register, the association must provide a certain number of details: first and last name, private address, nationality, national number, etc. In principle, it must also provide any documents proving that these details are adequate, accurate and up-to-date.
If the information proving the accuracy of the data contained in the UBO register is included in the Official Belgian Gazette, the association does not need to add any supporting documents and can simply link the UBO register with the Official Belgian Gazette.
What are the penalties?
In the event of infringement (absence of identification, incorrect or missing information, communication of changes outside the legal deadlines, etc.), administrative fines ranging from €250 to €50,000 may be imposed. These fines are imposed on directors individually or collectively. Criminal sanctions are also envisaged.
In the event of certain breaches (e.g. failure to update the register annually), associations may even be struck off automatically.
Our approach? A tailor-made solution for NPOs
We have developed an all-in solution for publishing changes to an association's board of directors: Official Belgian Gazette, Crossroads Bank for Enterprises and UBO register.