Access to data on beneficial owners will be subject to a legitimate interest

The Beneficial Ownership Registry was established as a key tool in the fight against money laundering and terrorist financing. It provides information that can be used to vet companies seeking public contracts or that have ties to politicians or entities on sanctions lists.

The proposed amendment responds to European anti-money laundering rules and court rulings, which held that unrestricted access constituted an unreasonable intrusion into the privacy of beneficial owners. The registry is already virtually inaccessible to the public; the law therefore aims to introduce a new procedure for submitting and evaluating requests. A legitimate interest is presumed, for example, in the case of journalists, nonprofit organizations, and academics researching money laundering, as well as public contracting authorities, entities administering European subsidies, or individuals entering into a business relationship. According to the government, the cost of modifying the system is estimated at approximately 45 million crowns.

Anti-corruption experts have reservations. The initiative “Odolné Česko” points out that explicit recognition of a legitimate interest in uncovering corruption, conflicts of interest, or the wasteful use of public funds was removed from the draft following the public comment period. Critics argue that this could restrict access for investigative journalists, academics, and nonprofit organizations beyond what is permitted under European rules, which also provide for the investigation of money laundering-related crimes.