Fictitious beneficial owner (Germany)
fiktiver wirtschaftlich Berechtigter
Other languages: Deutsch · Français · Español
Under section 3 of the German Anti-Money Laundering Act, the legal representative, managing partner or partner deemed to be the beneficial owner if no natural person with control can be identified.
The rule ensures that a natural person is always entered in the German transparency register. It is a fallback, not a shortcut for the identification.
In practice
In practice, it must first be shown in a comprehensible way that no natural person could be identified despite a thorough review of shareholdings and control rights. Only then are the legal representatives deemed to be the beneficial owners. The enquiries, the documents reviewed and the reasoning belong in the file – supervisors and banks regularly ask about this situation.
Distinctions and common mistakes
The fictitious beneficial owner is a fallback rule, not an option. A typical mistake is to enter it before all levels of the structure and any control through voting or fiduciary agreements have been examined; banks will ask for the reasoning in such cases.
Relevant in: Germany
Related terms
- Transparency register
- Central register of the beneficial owners of companies and other legal entities.
- Beneficial owner
- The natural person who ultimately owns or controls a company, foundation or trust, or on whose behalf a transaction is carried out.