From EUobserver · · 1m
EU Inc. Simplification Needs Legal Certainty
EU's new company law requires legal checks to prevent hidden ownership and money laundering risks.
In brief
EU's new company law requires legal checks to prevent hidden ownership and money laundering risks. The EU must add legal verification to its proposed 'EU Inc.' company law to avoid hidden ownership and money laundering risks. Originally reported by EUobserver.
EU Inc. Proposal
The European Commission proposed a 28th company law regime called 'EU Inc.' that allows companies to form without share capital or personal verification.
No Legal Checks
Founders could complete the process digitally without appearing before authorities, risking hidden ownership and legal gaps.
Property Ownership Risks
Unreliable company information could make it difficult to determine real estate ownership across the European Union.
Money Laundering Concerns
The proposal risks undermining anti-money laundering efforts by allowing hidden ownership and share transfers.
Safeguards Needed
The EU must add reliable founder identification and public oversight to prevent hidden ownership and money laundering.
Next Steps
The European Parliament and Council will decide on EU Inc. amendments by the end of the week to ensure legal certainty.
What it means
The EU must add legal verification to its proposed 'EU Inc.' company law to avoid hidden ownership and money laundering risks.
