By: Democritos Aristidou LLC
Cyprus Register of Ultimate Beneficial Owners
Cyprus incorporated in its domestic legislation the provisions of the 5th Anti-Money Laundering EU Directive 2018/843 by amending the Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007. A central register has been established in which the officers of the companies and other legal entities incorporated in Cyprus, are required to file the details of the beneficial owners to the Register. The register is kept electronically by the Registrar of Companies as the competent authority.
Who is considered as a beneficial owner?
Beneficial owner is any natural person who has the final possession or control of an entity, or the natural person on whose behalf a transaction or activity is carried out and who directly or indirectly owns or controls the entity with a 25% plus one (1) share.
When shall the data of the beneficial owners be submitted to the Register?
The filing of all required by law data of the ultimate beneficial owners must be completed before 12/03/2022.
What shall the consequences be in case of failure to provide the information of the UBOs to the Register?
After the expiration of the above deadline, the Supervisory Authority may, in case of failure to register the necessary data impose administrative fines and penalties.
Who will have access to UBO information?
Access to the Register will be granted only to the competent authorities such as the Tax Department, the FIU, the police and the Customs Department. The Register will be accessible to any person or organization that can demonstrate a legitimate interest, as provided in the 5th European Directive (EU) 2018/843. However, according to national law, the legitimate interest means only the personal interest in relation to the fight against money laundering, terrorist financing and related offenses. Therefore, the information that will be entered in the Register, regarding the ultimate beneficial owners of the companies and other legal entities, will not be available to the public.
Who is exempted from the obligation to provide UBO details to the Register?
The exemption from the obligation to disclose information about UBOs covers companies that submitted an application for strike off pursuant to Article 327 (2A) (a) of the Companies Law prior 12/03/2021 (time of entry into force) and companies in respect of which liquidation proceedings have been initiated at the time of entry into force of the relevant law in Cyprus.
Who shall be responsible for updating the data submitted to the Register?
After the implementation of the final system solution, which will be developed by 12/03/2022 the officials of each company should update and confirm the UBO data annually in December.
How shall the details of the UBOs submitted to the register?
The officials of each company should create a company profile on the Government Gateway portal (“Ariadni”). Furthermore, the necessary steps for the identification of the corporate profile should be taken (the identification process can be achieved by physical presence in the District Offices of the Ministry of Energy, Commerce and Industry, as well as in the Department of Registrar of Companies, by arranging a telephone appointment).
Which documents are needed for the identification process of the corporate profile?
– Company’s certificate of incorporation.
– Electronic confirmation of the corporate profile registration (the electronic receipt (16-digit number) that you have received upon creating your corporate profile through the government portal “Ariadni”)
Democritos Aristidou LLC can assist you with the creation and authentication of your corporate profile, as well with the submission of UBOs data to the Register. If you would like to engage our services, please contact Mrs. Christina Mita, Head of Corporate Department at [email protected] or our Operations Assistant Officer Mrs. Andria Alvani at +357 25 58 58 11 as well as at [email protected]
