As a measure to enhance transparency in transactions and operations of companies and other legal entities in Cyprus, in early 2021, the government of Cyprus amended the Law for the Prevention and Suppression of Money Laundering Activities to implement the 5th EU Anti-Money Laundering (AML) Directive.

The amended legislation introduced the requirement to establish Registers of Ultimate Beneficial Owners. For companies and other legal entities incorporated or registered in Cyprus, the authority responsible to establish and maintain this Register is the Registrar of Companies in Cyprus.

Introduction of a Register

As of March 12, 2021, every company or other legal entity incorporated or registered in Cyprus should submit and maintain adequate information on its ultimate beneficial owners through the government online portal.

The information to be submitted includes the name and ID or passport of the Ultimate Beneficial Owners and information related to the nature and extent of the beneficial interest in the relevant legal entity.

Ultimate Beneficial Owner

Ultimate Beneficial Owner is defined as any natural person who owns or controls the company or other legal entity, through direct or indirect ownership. The main indication of control is the shareholding of over 25% in the relevant legal entity.

Exceptions

Overseas companies, companies which filed an application to be struck off the Registry of Companies before March 12, 2021, or where their liquidation has begun prior to March 12, 2021 are exempted from the obligation to submit information to the Register. 

Important Dates & Penalties

Owing to the large number of companies and other legal entities registered and operating in Cyprus, a period of 12 months has been given for the submission of the relevant information. The last day of submission is March 12, 2022.

Legal entities which fail to submit the relevant information will be subject to a penalty of €200 and a further penalty of €100 for each day of continuation of the violation, with a maximum total penalty of €20,000.

Companies or other legal entities registered from March 12, 2021 onwards, have 30 days from the date of their registration to submit the required information.

Any amendments related to the ultimate beneficial owners should be submitted within 14 days.

We can assist with:

• Registration of your Company with the government online portal,
• Collection and submission of all relevant beneficial owner information of your Company,
• Ongoing support with all compliance requirements.

Should you wish to find out more, contact our team at info@paraschou.com.cy.