It’s possible to restrict who views the Transparency Register

What is the Transparency Register?

The Transparency Register is a German electronic register that was introduced to increase the transparency of the beneficial owners of businesses and other legal persons. It is designed to combat money laundering and terrorist financing. The Transparency Register was introduced on 27 June 2017. Since 1 August 2021, nearly all companies and their beneficial owners are liable to be entered. The Money Laundering Act (Geldwäschegesetz), and particularly the provisions on the Transparency Register and entitlement to view it, are based on the fourth Money Laundering Directive (EU 2015/849).

Introduction of the Transparency Register meant less protection for privacy  

The introduction of the Transparency Register considerably weakened the protection of the privacy of wealthy individuals, due to its wide-ranging publication duties. The Transparency Register includes the names, dates of birth, residencies, nationalities, and the nature and scope of the beneficial interests of the shareholders of companies and the beneficiaries of foundations and trusts. After viewing information was initially granted to everyone, under a judgment by the European Court of Justice (cases C-37/20 and C-601/20) this is now only possible to those with a legitimate interest. 

Restricting inspection of the Transparency Register is possible

Inspecting the information can be partly or completely restricted or excluded on application if interests deserving protection exist. These interests are particularly given in the case of minors and without legal capability. Furthermore, restricting or excluding access to inspect the register is possible if there are facts that warrant the assumption that viewing would put the beneficial owner in danger of becoming the victim of a crime such as fraud, blackmail, being taken hostage, physical violence, etc. Until now, the latter, practically important case was difficult to fulfil. That’s why restricting or excluding access to view the register in the past was hardly ever achieved. 

A latent danger to wealthy private individuals 

Cologne Administrative Court has now decided that publishing the information of wealthy private individuals already constitutes a latent danger of them falling victim to a “listed crime”.

Basis for the restriction – the danger must be real and reduceable

It must be possible to reduce the danger by restricting who can view the register. In the case before Cologne Administrative Court, the assets and the information in the Transparency Register had already been made known by the media. As a result, the court denied a restriction on viewing them. 

When can viewing be blocked or excluded?

According to the Cologne judgment, it should be possible to exclude or restrict access to the Transparency Register for wealthy private individuals in particular if at that time their assets and personal data are mostly not known. The information may also not be publicly available in any other registers. This could especially apply to the members of business families who do not personally have a public role. It should also be possible to restrict viewing the information of foundation or trust beneficiaries. In such cases, proving the wealth should be sufficient.

How can viewing the Transparency Register be restricted?

Would you like access to restricting inspection in your details in the Transparency Register to be restricted? Contact us – we’ll be pleased to help.