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UBO-register lacks good privacy safeguards

This text is a summary of the artikel UBO-register: UBO-register lacks good privacy safeguards written by R. de Lange-Snijders en C. de Nooijer.

One of the consequences of the fourth anti money-laundering directive is that all European Member States have to implement an Ultimate Beneficial Owner register (UBO-register) before June 27, 2017. Shareholders that hold more than 25 percent of the shares in a company have to be registered. This article discusses a comparative law analysis of the impact of the UBO-register in several EU member states and European developments regarding this register.

UBO's of family businesses will also be included in the register, which will have a great impact on the privacy of these UBO's. Striking is that a good balance between privacy and transparency is not included in the first information on the UBO-register. The privacy safeguards are also not convincing. The only real privacy safeguard is that a person can request to hide public information in the UBO-registry for example in case of the likelihood of kidnapping. It is not clear how UBO's can proof these kind of threats.

Source: De Lange-Snijders, R. & De Nooijer, C. C. C. (2016). Goede privacybescherming ontbreekt in UBO-register. Privacy & Information, 5, 204-206.