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September 30, 2015 | News September 2015 | Register of Ultimate Beneficiary Owners of Companies Participating in Public Procurement in Slovakia

The parliament has adopted an amendment to Act No. 343/2015 on Public Procurement, as amended, also referred to as an act against companies with undisclosed owners (or the “Anti-Shelf-Company Act”). Under the amended act, only companies whose actual beneficiary owners are registered in the Register of Ultimate Beneficiary Owners, maintained by the Office for Public Procurement, will be allowed to participate in public procurement processes in Slovakia. It should be noted that the amendment was adopted by the parliament after the previous veto by the President of the Slovak Republic, who praised the legislative initiative but criticized rather narrow application of the act and failure to provide a set of comprehensive rules. In particular, the president noted that the act should not be limited to public procurement only, but should also apply to state aid, subsidies, management of state assets, etc. The parliament overturned the veto without addressing his criticism. Under the new regime, participants in public procurement will be allowed to conclude an agreement with the winner only if the winner’s ultimate beneficiary owners are registered in the Register of Ultimate Beneficiary Owners.