In an effort to implement recent EU Directives, Austriahas been subject to a number of legislative changes and adaptions.Particularly noteworthy have been the amendments made to Austrian competition law, based on EUDirective 2014/104, as set forth in the Austrian Cartel Act (“KartG”). The new rules include provisions on the submission of damages claimsregarding antitrust infringementsand are aimed at establishing greater certainty surrounding their enforcement. They also offerchanges to the limitation periodfor bringing such actions, extendrules on disclosure andshiftthe burden of proofto restwith the defendant.This development has been supplemented by the implementation of the EU Directive 2016/943and the resulting amendments to the Federal Act against Unfair Competition (UWG), centring on the protection of undisclosed business information and the prevention of industrial espionage.

Most recently, it has been the implementation of EUDirective2018/843, amending the local Ultimate Beneficial Owner Registry Law, that hasattracted particular attention asthe latest additionto what has become and intricate and highly sophisticated compliance scheme.Since cominginto legal forceon 10 January 2020(further revisions effective as ofNovember 2020 andMarch 2021), these amendmentshaveintroducedprofound changes,some ofwhich have been highlighted below.

I. Public Access

• Access has traditionallybeen reservedto a limited group of individuals(e.g. notaries, creditors, attorneys-at-lawetc.) andthose having a legitimate interest to obtain information from the Register.
• As of now anyoneseeking accessis guaranteed to obtain information on any legal entity’s beneficial owner

II.Notification Requirements

• Annual reviews to verify whether data entries are both complete and correct have formerly been deemed sufficient. Changes had to be documented and requirednotification. If no alterations were made to the Register nofurther actionwould be required.
• At present, necessary changes must be registered within four weeks of the annual review being finalised. In the absence of such changes, an express notification must be provided confirming the validity of the registered data.

III.Trusts

• Transactions centring on the use of trusts have previously beensubject to theAustrian WiEReG assuming there is a direct relationshipbetween their administration and the forum(potential indicators include the trustee’s permanent residence or legal seat).
• Registration is required irrespective of the location of administration (whether Austria or anotherEU MemberState)provided the trusteehasentered intobusiness relationshipswithinor engaged intransactions involving purchasesof real estate located in Austria.With regardtotrusteeships, ownership interests mustbe identified in the Register.

IV.Penalties

• Incorrect/incomplete notifications, failures to comply with notification requirements (following two requests) or neglecting to register relevant changes within a four-week timeframe have been penalised in monetary terms (EUR 200,000 (intent); EUR 100,000 (gross negligence)).
• The grounds for imposing penalties remain unchanged but have been extended. Failing to retain documents or other information necessary to ensure compliance with the aforementioned obligations allows for the imposition of fines (EUR 75,000 (intent), EUR 25,000 (gross negligence)). Should a party become aware ofinformation being eitherincomplete or false an electronic note has to be entered unless revisions areoffered within a reasonable time. Penalties may now be imposed withinsix weeks instead of three months

V.Compliance Package

• As of November,a new data platform is goingto enter into force with the aim tocentraliseall of the relevant documentation surrounding the verification of ultimate beneficial ownership. Termed asthe “Compliance Package”it purports to facilitate the Register’s operation by storing previously uploaded notes,records andconfirmations suppliedby reporting entities.

Concluding Remarks

Austria’s commitment to the creation of a minimum standard of public access to beneficial ownership has been reinforced and furthered by the recent amendments to the UBO register that entered into force with the onset of this year. As an extensive platform that centralises beneficial ownership information, it serves as an essential tool in preventing money laundering, tax evasion and terrorist financing. In addition to the often overlooked but critical role of establishing citizen trust, this revised and streamlined approach also allows businesses to reduce costs and minimise the complexity surrounding their exercise of due diligence and risk management. By facilitating accessibility and increasing transparency, the recent adaptions of Austria’s legal provisions on UBO registers has the potential to solidify market stability as well as increase investor confidence and effectiveness in the allocation of capital.

The central location for recording both natural persons and legal entities taken together with the newly implemented procedural amendments, constitute critical tools in the practice of litigators both in relation to their asset tracing abilities and enforcement powers. With access to a now significantly broadened scope of information, they will be better equipped to combat complex crime and corruption in a manner that is not merely reactive but more effective and expedient.