§ 20 GWG (Money Laundering Act)

Transparency Obligations with Respect to Certain Associations

Paragraph 1: Legal entities under private law and registered partnerships are required to obtain, store, keep up-to-date, and immediately report to the registering authority for entry in the Transparency Register the information on the beneficial owners of these entities as listed in § 19 Paragraph 1. The notification must be made electronically in a format that facilitates its electronic accessibility. For details on the nature and extent of the economic interest under § 19 Paragraph 1 Number 4, it must be specified based on § 19 Paragraph 3 from which the status as a beneficial owner follows, unless Paragraph 2 Sentence 2 applies.

Paragraph 2: The obligation to notify the Transparency Register as per Paragraph 1 Sentence 1 is considered fulfilled if the details of the beneficial owner listed in § 19 Paragraph 1 are already available from the documents and entries listed in § 22 Paragraph 1, which are electronically accessible from:

1. the Commercial Register (§ 8 of the Commercial Code),
2. the Partnership Register (§ 5 of the Partnership Company Act),
3. the Cooperative Register (§ 10 of the Cooperative Act),
4. the Association Register (§ 55 of the Civil Code), or
5. the Corporate Register (§ 8b Paragraph 2 of the Commercial Code).

For companies listed on an organized market under § 2 Paragraph 5 of the Securities Trading Act or subject to transparency requirements equivalent to those of Community law with regard to voting rights or equivalent international standards, the obligation to notify the Transparency Register is always regarded as fulfilled. A separate indication regarding the nature and extent of the economic interest under § 19 Paragraph 1 Number 4 is not required if it is apparent from the documents and entries listed in § 22 Paragraph 1 from which under § 19 Paragraph 3 the status as a beneficial owner follows. If a notification to the Transparency Register has been made according to Paragraph 1 Sentence 1 and thereafter the beneficial owner changes such that the details about them are now available from the registers listed in Sentence 1, this must be immediately communicated to the registering authority for consideration in the Transparency Register as per Paragraph 1 Sentence 1.

Paragraph 3: Shareholders who are beneficial owners or are directly controlled by the beneficial owner must immediately inform the entities as per Paragraph 1 of the details necessary to fulfill the obligations stated in Paragraph 1 and any changes to these details. If a member of an association or a cooperative controls more than 25 percent of the voting rights, then the obligation under Sentence 1 applies to these members. For foundations, the obligation applies to the persons under § 3 Paragraph 3. The same applies to those required to provide details under Sentences 2 and 3 who are under the direct control of a beneficial owner. If those required to provide details under Sentences 1 to 3 are under the indirect control of a beneficial owner, then the obligation under Sentence 1 applies to the beneficial owner.

Paragraph 4: The requirement to provide information under Paragraph 3 is waived if the reporting obligation under Paragraph 1 is considered fulfilled according to Paragraph 2, or if the shareholders, members, and beneficial owners have already provided the required information in another form.

Paragraph 5: The Central Office for Financial Transaction Investigations and the supervisory authorities may, within the scope of their duties and powers, inspect or request the details stored as per Paragraph 1.