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Access to the register of beneficial owners: new conditions from July 31, 2024

Published on July 29, 2024 by Pierre Belhache - 4 mins reading time
Professional Companies Case law Associations Self-employed

In a ruling handed down in 2022, the Court of Justice of the European Union (CJEU) ruled that public access to the register of beneficial owners was contrary toArticles 7 and8 of the EU Charter of Fundamental Rights. The conditions of access to the RBE will therefore be restricted from July 31, 2024. Here's a closer look at what's going to change.

Know the identity of French business owners

Since August 2, 2017, a newly created company has been required to register the individuals exercising effective control of the company in the register of beneficial owners.

More specifically, this formality concerns :

  • commercial companies(SARL, SA, SNC, SAS),
  • non-trading companies(SCP, SCI),
  • economic interest groupings(EIGs),
  • associations registered in the Trade and Companies Register (RCS),
  • collective investment schemes.

In accordance witharticle L 561-2-2 of the French Monetary and Financial Code, a beneficial owner is :

  • a person who owns, directly or indirectly, more than 25% of the capital or voting rights
  • or, failing that, a person exercising control over the company's management bodies.

If no one meets these criteria, the beneficial owner is the company's legal representative.

The register of beneficial owners, which has been open to the public since April 2021, makes it easy for any citizen to find out the identity of the owners of French companies. Indeed, simply visit the DATA INPI platform to obtain information on an entity. This register is considered a major step forward in terms of financial transparency and the fight against fraud and money laundering.

Restricted access from July 31, 2024

Access to the register of beneficial owners will be restricted from July 31, 2024. This decision follows a ruling by the CJEU on November 22, 2022, which invalidated public access to beneficial owner information. The Court ruled that this constituted a violation of the right to privacy and data protection. The 6th European Anti-Money Laundering Directive published on June 19, 2024 then established new rules to regulate access to BPR.

As of July 31, competent authorities and regulated professionals will continue to be able to access the data in the register, in accordance with Article L 561-2 of the French Monetary and Financial Code. Companies will have access to information on their beneficial owners and the beneficial owners of their co-contractors, in order to meet their compliance and "know-your-customer" obligations. Journalists, researchers and those committed to financial transparency will have free access to the register. In other words, only those with a legitimate interest will be able to consult beneficial owner information.