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Harris Kyriakides
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Harris Kyriakides

Changes to the Cyprus UBO Registry framework

Posted on 3 January 2025 | 2 mins read

The Department of Registrar of Companies and Intellectual Property (DRCIP) has announced significant updates to the implementation framework of the Ultimate Beneficial Owners (UBO) Registry in Cyprus. These changes stem from the enactment of the Prevention and Suppression of Money Laundering (Amendment) (No. 2) Law of 2024, published on 6 December 2024 under Law N.141(I)/2024.

Key amendments to the framework

1. Penalties for Non-Compliance:

  • If a company or other legal entity does not submit the required UBO information, it will face penalties.
  • Individual directors or secretaries will not face penalties directly. However, directors or managing directors may be held jointly and/or separately liable with their company for any imposed penalties.

2. Revised Penalty Amounts:

  • Non-compliance will incur a penalty of €100 on the first day, followed by €50 for each additional day of violation.
  • The maximum penalty for any company or legal entity is capped at €5,000.

3. Additional Provisions:

  • The Registrar of Companies can now issue guidelines (KDP) to establish procedures for administrative review or objections to penalty decisions.
  • The Registrar is empowered to remove non-compliant entities from the business register, following deletion procedures under Article 327 of the Companies Law or subsection (5) of Article 57 of the Partnerships and Trade Names Law.
  • The Registrar can seek a court order to force a company to comply with its reporting obligations under section 61A of the amended law.

4. Extension of deadlines and reimbursement of penalties

  • The deadline for submitting UBO data has been extended to 31 January 2025 for all companies and legal entities.
  • The process for confirming UBO data for 2024 is extended until 31 March 2025, as per the revised directive KDP423/2024 issued on 16 December 2024.

5. Refund of penalties

  • Any penalties imposed between 1 April 2024 and the implementation of these changes will be withdrawn, and refunds will be issued.

These amendments underscore Cyprus’s commitment to enhancing compliance while recognising the practical needs of businesses. Companies are advised to take immediate action to meet the revised deadlines and avoid potential penalties.

For more information or any inquiries, please feel free to contact us at [email protected]