Ultimate Beneficial Owner (UBO) register to be introduced in Cyprus from 2021

On the 16^th of December 2020, the Department of the Registrar of Companies and Official Receiver will have under its jurisdiction the upcoming register of Ultimate Beneficial Owners, as provided by the European Union’s Fourth Anti-Money Laundering Directive, the Council of Ministers decided to:

1. Appoint the Registrar of Companies and Official Receiver as the competent authority for maintaining a central Registry of Beneficial Owners of companies and of other legal entities and to
2. Authorize the Registrar of Companies to proceed to the collection of information in relation to Beneficial Owners of companies and of other legal entities through an interim information system that has been developed.

The Registrar of Companies announced that date that the information collection shall commence shall be the 18^th of January 2021. As from that date, a period of 6 months (i.e. up until the 19^th of July 2021) shall be given to companies to submit through the system that has been developed the requested information in relation to the ultimate beneficial owners of relevant legal entities.

It is stressed that the said system is only a temporary solution and access to the said system will be given only to competent authorities and only after they submit an official request to the Registrar of Companies. The information that will be collected through this interim system will be transposed to the final version of the system that it is expected to be fully developed the second semester of 2021 and access to the fully developed system will be in accordance with the provisions of the 5^th AML Directive, concerning the prevention of anti-money laundering and terrorist financing.

Companies are urged to commence collecting the mandatory information which must have already been in their possession in accordance with the provisions of section 61(A) of the Anti-Money Laundering Law as amended from time to time. Additionally, such information must also be kept by regulated entities that provide services to companies on the basis of sections 2A(d), 60 and 61 of the abovementioned law as well as on the basis of the law regulating companies providing administrative services.

The department of the Registrar of Companies will revert in due course as regards the link for submitting the requested information and provide further guidance as to the matter.

How we can help

If you or your company is in any way affected by the anticipated implementation of the BO Register (Cyprus), please contact us at your earliest opportunity so that we can evaluate your business’ corporate structure and guide you through any changes that may need to be made to protect your and your company’s interests and to ensure compliance with the applicable legislation.