The Cyprus Securities and Exchange Commission (CySEC) has recently issued Regulatory Administrative Act 243/2026, tightening the framework that governs the register of beneficial owners of express trusts and similar legal arrangements. This amendment further refines Cyprus’ anti‑money laundering (AML) architecture and limits to CyTBOR, the Cyprus Trusts Beneficial Owners Registry.
Key changes to CyTBOR
The new directive amends the way CyTBOR operates under section 61C of the Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007. In particular, it narrows the definition of “authorised user”, removes paragraph 10(5), and deletes paragraph 14 of the basic directive, simplifying the operational rules while tightening access.
In practice, these changes translate into stricter conditions on who can obtain trust ownership information and in what circumstances. At the same time, trustees and service providers remain under a clear obligation to maintain adequate, accurate and up‑to‑date information on settlors, trustees, protectors, beneficiaries and other natural persons who ultimately exercise effective control over the trust.
The EU privacy context: WM/Sovim
The more restrictive access model for CyTBOR reflects a broader EU trend following the CJEU’s WM/Sovim judgment (Joined Cases C‑37/20 and C‑601/20). In that decision, the Court held that unrestricted public access to beneficial‑ownership registers is a serious and disproportionate interference with privacy and data‑protection rights under Articles 7 and 8 of the Charter of Fundamental Rights.
The Court made it clear that transparency remains essential for AML/CFT purposes, but it must be carefully balanced against legitimate privacy interests. This is particularly relevant in the trust context, where a degree of confidentiality has always formed part of the legal and commercial rationale, provided that supervisory authorities and obliged entities retain the information they need to perform effective checks.
What this means for Cyprus trusts
For clients using Cyprus trust structures, whether high‑net‑worth individuals family offices, the updated framework means that beneficial‑ownership information is not open to the general public. Access is reserved for competent authorities, obliged entities and persons who can demonstrate a legitimate interest clearly connected to AML/CFT objectives.
Cyprus therefore offers a combination of strong regulatory oversight and a realistic level of privacy and data protection around wealth‑planning and estate‑planning structures. Beneficial‑ownership information is filed and kept in CyTBOR, but the trust deed itself is not registered or published, and any disclosure of data follows strict conditions set out in applicable regulators.
How M. Paraschou & Co LLC can assist
At M. Paraschou & Co LLC, we work precisely where AML compliance and Data Protection meet. Our team supports clients with:
- CyTBOR registrations and ongoing updates for express trusts and similar legal arrangements.
- Outsourced AML services and trust/corporate customer due diligence frameworks aligned with CySEC and other Cypriot regulators.
- Advising, structuring and drafting of trust instruments for Cyprus law trusts and Cyprus International Trusts (CIT), in line with the Trustees Law, the International Trusts Laws 1992–2013 and current regulatory expectations.
Our objective is straightforward: to help clients build and maintain structures that meet client’s needs and compliant with modern AML/CFT and data‑protection standards.
If you would like to discuss how Regulatory Administrative Act 243/2026 or the WM/Sovim judgment may affect your trust or corporate structures, or how outsourced AML support can be integrated into your compliance framework, please contact the team at M. Paraschou & Co LLC.
📞 Call us: 00357 22 622 262
📧 Email us: info@paraschou.com.cy
🌐 Visit: www.paraschou.com.cy
This article is provided for general information purposes only and does not constitute legal, tax, or other professional advice. It should not be relied upon as a substitute for specific advice on any individual matter or transaction. Professional advice should be obtained before acting or refraining from acting on the basis of any information contained herein.
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