On 22 November 2022, the European Court of Justice (ECJ) has decided that open public access to the registers of the beneficial owners (BO) of companies registered in EU member states is no longer valid, as it contravenes with Articles 7 (Respect for Private Life) and 8 (Protection of Personal Data) of the Charter of Fundamental Rights of the European Union.
In particular, the ECJ took the view that the unrestrained public access to the BO registers of EU Member States constitutes a serious interference with the aforementioned fundamental rights, enabling a potentially unlimited number of persons to have access, retain or disseminate information related to the material and financial situation of a beneficial owner.
Despite the fact that, the EU legislature by the introduction of the said measure seeks to prevent money laundering and terrorist financing, the Court considers that the said measure is disproportionate to the objective of general interest pursued and poses a more serious interference able to offset any benefits.
In the aftermath of the ECJ ruling, various EU Member States have suspended the open access to their BO registers. However, the impact of the decision remains to be seen, as one might consider that it might not only affect the European legislative framework, but might also influence jurisdictions on an international level, an example being the United Kingdom.
The official press release of the European Court of Justice can be found here.
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