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Significant updates to UBO Registry

Contributed by:

Nicole Georgiou
UBO Registry: updates - Cyprus Dec 2024

Contributed by:

Nicole Georgiou
UBO Registry: updates - Cyprus Dec 2024

Significant updates to UBO Registry

On 16 December 2024, the Department of the Registrar of Companies and Intellectual Property announced key amendments to the Prevention and Combating of Money Laundering from Illegal Activities (Amendment) (No. 2) Law of 2024, N.141(I)/2024, published on 6 December 2024. The main changes are summarized as follows:

  1. Imposition of Financial Charges: Financial charges will apply exclusively to the company or legal entity that fails, neglects, or refuses to comply with its obligations to submit information on beneficial owners, as mandated by Law 188(I)/2007 and associated Directives. Directors and secretaries are exempt from direct financial penalties.
  2. Liability for Non-Compliance: Directors or managing directors who fail to ensure compliance with beneficial owner information submission requirements will be jointly and/or severally liable with the company for covering the financial penalties imposed on the company.
  3. Revised Financial Charges:
    – A fixed charge of €100 will be imposed on the first day of the violation.
    – An additional charge of €50 will accrue for each subsequent day the violation persists.
    – The maximum total charge is capped at €5,000 per company or legal entity.
  4. Additional Powers Granted to the Registrar of Companies:
    – The Registrar may issue Directives to establish administrative review procedures and/or facilitate the submission and examination of objections against financial penalties.
    – The Registrar has the authority to remove from the business entity register any company or legal entity that fails, neglects, or refuses to update beneficial owner information.
    – The Registrar can apply to the Court for an injunction compelling compliance with obligations.

Extension and Withdrawal of Financial Charges

The deadline for submitting beneficial owner information for all Companies and Legal Entities has been extended to 31 January 2025. This initiative addresses practical implementation challenges and financial burdens on Small and Medium Enterprises (SMEs) while recognizing the high compliance rate achieved. Additionally, the deadline for completing the data confirmation procedure for 2024 has been extended to 31 March 2025.

In addition, the Registrar is withdrawing the financial charges imposed since 1 April 2024 and will issue refunds to affected companies. From 1 February 2025, however, failure to submit beneficial owner information will result in administrative and other sanctions in line with the provisions of the law.
These amendments aim to strengthen compliance with beneficial ownership reporting requirements and enhance enforcement measures by ensuring transparency and accountability while promoting a more secure and trustworthy business environment.

Our dedicated compliance team is here to provide expert assistance and guidance on your reporting obligations. For more information, feel free to reach out to us at [email protected]

Official source: Cyprus Registrar of Companies

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