Cyprus: In Preparation for Central Register of UBO(s)

Cyprus: In Preparation for Central Register of UBO(s)

The European Union has constantly taken steps to ensure transparency of the beneficial ownership (UBO) 
The importance of the forthcoming measures is evident and well-grounded. Business transparency is the foundation of efficient economy and of social well-being of society. Furthermore, it encourages the search for new solutions which can counter challenges of modern times.
The European Union in the aftermath of Panama Papers and terrorist attacks introduced with the 4th AML Directive (EU) 2015/849 significant changes to the regulatory framework aiming at prevention of money laundering, terrorist financing and organized crime.
The aim of this package of measures is to protect the integrity, proper functioning, reputation and stability of the financial system. Transparency of the beneficial ownership is the key factor in combating criminal business activities. In agreement with this idea the EU Member States have made a decision to establish national Central Registers which require from the corporate entities to disclose the information on their Ultimate Beneficial Owners (“UBOs”).

Cyprus: In Preparation for Central Register of UBO(s)
The 4th Anti-Money Laundering Directive was transposed into Cyprus Law on April 3, 2018 by amending the Prevention and Suppression of Money Laundering Activities Law of 2007 (188(1)/2007). Consequently, the Council of Ministers, with its decision of December 16, 2020 appointed the Registrar of Companies and Official Recipient as the competent authority for maintenance of the central Register of UBOs and collection of all the necessary information.

The start date for data collection has been set on February 22, 2021. The companies will be granted a period of 6 months (i.e. until 22/08/2021) for registration of the information concerning the real beneficiaries of their legal entity according to the procedure that has been developed. The obligation to register and submit the information lies with the officials of the legal entity. The officials of the company are obliged to disclose the name and surname of the UBO, nationality, date of birth, ID or passport number and issuing country, address, nature and extent of beneficial interest and type of UBO (e.g. UBO, senior managing official etc.).

Furthermore, the 5th AML Directive (ΕU) 2018/843 (which has not been transposed into the national law of Cyprus so far) requires that the information maintained in the Register of UBOs will be available to the general public upon registration and payment of a small fee. It is important that the legal entity will be informed of any access to its data, unless it is from an Authority. The public will have access to the following information of the UBO: name and surname, month and year of birth, nationality, country of residence, nature and extent of beneficial interest.

Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information. Also, please visit our website for further updates