Cyprus has tight regulations for open company ownership to combat money laundering and the financing of terrorism.

The Beneficial Ownership Register, introduced in 2005, requires that a company’s actual beneficiaries—those who stand to gain the most from its operations and assets—be duly disclosed, documented, and submitted to the appropriate authorities.

This tutorial outlines the filing procedure, important terminology, and compliance processes to fulfil this critical requirement.

 

The Beneficial Ownership Register’s legal basis

Cyprus’s Beneficial Ownership Register (BO Register) legislative structure is derived from EU Directives designed to prevent money laundering.

• The 4th Anti-Money Laundering Directive mandates that member states uphold a central registry of beneficial owners for corporations, trusts, and legal entities.
• The 4th Directive was modified by the 5th Anti-Money Laundering Directive, which required corporations to maintain publicly available registers of beneficial ownership.

These guidelines were put into effect in Cyprus by the Prevention and Suppression of Money Laundering Activities Laws, which mandate that businesses disclose information about their beneficial owners on the BO Register to maintain openness and adherence to the rules.

Details regarding the beneficial owners of entities covered by the law are stored in a centralized database called the BO Register.

See the Guidance to the Final Solution of the Beneficial Ownership Register for a comprehensive explanation of the term “beneficial owner”.

 

Application range for Cyprus entities

Certain entities must comply with the requirement to submit details about the beneficial owner, while others are not.

 

Entities within the scope

The following organisations are obligated to comply:

• Entities incorporated or registered under the Companies Law Cap.113
• European Public Limited Liability Companies
• Partnerships

 

Exempt entities

The entities below are exempted:

• Companies listed on regulated exchanges that are subject to disclosure laws guaranteeing ownership information openness
• Organisations that submitted a strike-off application before the Directive’s implementation (before March 12, 2021)
• Organisations that were under liquidation before the start of the Directive (March 12 2021)
• Overseas entities (branches)
• It should be noted that all entities whose liquidation or strike-off was implemented after March 12, 2021, are still required to file the data of their beneficial owners.

 

Cyprus filing requirements for entities under the scope

As an entity that falls under the scope, you must register the beneficial owner’s information on the BO Register.

Please be aware of this:

• There is no need to submit paper forms; all necessary information for each beneficial owner must be entered into the Internet portal to complete the filing.
• The system does not impose a filing fee for submitting the BO data.
• Data has only been kept since March 12, 2021.

 

Which data should I file?

The information that must be filed depends on the type of entity, its legal structure, and the traits of the beneficial owner.

Contact our support team for fast assistance and customized Guidance regarding your circumstances.

 

When to file

• The deadline for current entities has been moved from December 31, 2023, to March 31, 2024.
• Within ninety (90) days of the date of registration or incorporation for new registrations.

 

Modification of BO data

If a beneficial owner’s information changes, the entity and its officers must update the BO Register with the new information or submit the updated data.

Whether there is a new beneficial owner or an update to an existing one’s details, this must be completed within 45 days of the day the beneficial owner’s information changes.

 

Annual confirmation duty

An entity must electronically authenticate its beneficial owners with the Registrar every calendar year between October 1 and December 31.

The annual confirmation feature will be available on the system as of April 1, 2024.

 

Getting into the BO Register

Currently, information in the BO registration is not accessible to the general public. The data kept in the BO registry (via e-search) can only be accessed by the authorised companies and the responsible Supervisory Authority.

When this feature is made available on the system beginning on April 1, 2024, parties with data inconsistencies between what the competent Supervisory Authority/obligated entities possess and the data in the system must furnish supporting documentation and proof of the discrepancy.

 

Penalties for entities who do not comply

There will be no fines during the first phase of the BO Register, which runs from November 14, 2023, to March 31, 2024.

However, as of April 1, 2024, the organization and each of its officers will be fined €200, and the amount will increase by €100 for every day that the infringement continues. The total fines cannot be more than €20,000.

 

In summary

Establishing the Beneficial Ownership Register in Cyprus is a critical step towards promoting transparency and combating the funding of terrorism and money laundering.

Any entity covered by this law must comprehend and fulfil its filing requirements to avoid fines and guarantee adherence to EU Directives.

Please get in touch with our support team at service@gerai.co.uk for helpful advice if you have any problems or require assistance with the filing process.