SOVIM SA – CJEU Judgment (European Union, 2022)

In Case C-37/20, YO, a real estate company, lodget a request to Luxembourg Business Registers (LBR) pursuant Article 15 Law of 13 January 2019 (Law of 13 January 2019 of Luxembourg establishing the Beneficial Owner Register - transposing the provisions of Article 30 Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing) requesting that access to the information concerning WM, its beneficial owner, contained in the register, to be restricted solely to the entities mentioned in that provision, on the ground that the general public’s access to that information would seriously, actually and immediately expose WM and his family to a disproportionate risk and risk of fraud, kidnapping, blackmail, extortion, harassment, violence or intimidation. On November 20, 2019 the request was rejected by LBR arguing that WM’s situation does not meet the requirements of Article 15 Law of 13 January 2019, since WM cannot rely either on ‘exceptional circumstances’ or on any of the risks referred to in that article. On 5 December 2019, WM brought an action before the tribunal d’arrondissement de Luxembourg (Luxembourg District Court, Luxembourg), maintaining that his position as executive officer and beneficial owner of YO and of a number of commercial companies requires him frequently to travel to countries whose political regime is unstable and where there is a high level of crime, which creates a significant risk of his being kidnapped, abducted, subjected to violence or even killed. In that regard, the referring court raised the question of the interpretation to be given to the concepts of ‘exceptional circumstances’, ‘risk’ and ‘disproportionate’ risk within the meaning of Article 30(9) Directive 2015/849, as amended. In Case C‑601/20, Sovim lodged a request to LBR, pursuant to Article 15 Law of 13 January 2019, requesting that access to the information concerning its beneficial owner, contained in th