By: N. Pirilides & Associates LLC
In an attempt to strengthen and harmonize the framework with regards to the prevention and suppression of money laundering, the Register of UBOs in Cyprus has been created beginning of 2021.
The collection of data and information with regards to UBOs was going to start in March same year. However, the timeline for the collection and submission of data onto the system has been extended, owing to the large number of companies/partnerships having to create and authenticate at the designated authorities their corporate/partnerships accounts with Ariadni. Particularly, following the 12/3/2022 the Register of Beneficial Owners of corporate and other legal entities must be up-to-date with the relevant information.
In accordance with the provisions of the relevant AML Law, the Directive issued by the Cyprus Registrar of Companies and the Guidance issued by the Cyprus Registrar of Companies, the “Beneficial Owner” of a company and/or other entity is defined as the natural person who ultimately owns or controls the company, directly or indirectly.
· Direct Ownership may be indicated by shareholding of 25% + 1 share or an ownership interest of more than 25% in the entity.
· Indirect Ownership may be indicated by a shareholding of 25% + 1 share or an ownership interest of more than 25% in the entity held by a corporate entity, which is under the control of a physical person(s), or by multiple corporate entities, which are under the control of the same physical person(s) or through a nominee shareholder (whether physical or corporate) or other legal arrangements.
During the period from the 1st to the 31st of December of each year, the officials of the company are further obliged to confirm the information maintained on the BO Register regarding the beneficial owners’ details. In order to comply with the AML Law, the following steps should be adhered:
First Step – Creation of a corporate profile with Ariadni
The responsibility for the submission of details relating to the beneficial owner(s) of the legal entity lies with the legal entity itself through its officials (Director or Secretary). In order to submit such details, each entity must create a corporate profile in Ariadni governmental portal.
Second Step – Activation of the Ariadni account
A company official or any authorized person must submit various documents to the nominated authorisation centres. Our firm can undertake this.
Third Step – Inform the BO Register
Our firm may assist in submitting such UBO information with the Registrar of Companies and also update the BO Register in case of change in the beneficial owner’s information and confirm such information annually.
For more information, you may contact us at info@pirilides.com.
