2022-11-24-KPMG_s_EU_Tax_Centre-Euro_Tax_Flash_from_KPMG_s_EU_Tax_Centre_4页_238kb

Summary of CJEU Decision on Beneficial Ownership Transparency

Background

The Court of Justice of the European Union (CJEU) invalidated certain transparency obligations under Anti-Money Laundering Directives (AMLD) through judgments in cases C-37/20 and C-601/20. These cases examined AMLD 4 and AMLD 5 provisions, which required Member States to provide public access to beneficial ownership information. The decision addressed fundamental rights implications, particularly under the EU Charter.

CJEU Ruling

• The CJEU found the AMLD 5 provision allowing general public access to beneficial ownership data invalid.
• This ruling was based on the argument that the provision unjustifiably interfered with fundamental rights, such as the right to privacy and data protection.
• The Court determined that the measure was neither necessary nor proportionate, as combating money laundering could be achieved more balanced by restricting access to certain stakeholders, as done under AMLD 4.
• Key findings include the lack of clear safeguards and the imbalance between the objective and fundamental rights.

EU Tax Centre Comment

This ruling may lead to a reversion to AMLD 4's rules, which required case-by-case assessment for data access. It also raises implications for other EU transparency legislation, such as the Public Country-by-Country Directive, potentially affecting opt-in provisions.