Each EU Member State is required to have transposed AMLD 5 into national legislation by 10 January 2020.
Cyprus introduced AMLD 5 into national legislation through amendments to the Prevention and Suppression of Money Laundering and Terrorist Financing Law (188 (I)/2007) (the “Law”).
Now, pursuant to Directive K.D.P. 112/2021 (as amended under Article 61(A) of the Law the Department of the Registrar of Companies (“RoC”) has announced that a new and final electronic system to the Register of Beneficial Owners of companies and other legal entities (the “UBO Register”) has been introduced. The new UBO Register replaces the existing system, which was implemented with effect as of 12 March 2021 as an interim measure for the collection of information on beneficial owners (the “Interim System”). Access to the UBO Register began 14/11/2023. You may access the official announcement of the RoC on: https://www.companies.gov.cy/en/business-entities/2-company/5-lifecycle/1-running-a-company/5-guidance/updating-the-register-of-beneficial-owners/when-should-i-enter-the-details-in-the-register
The RoC has divided the registration periods as follows:
Period A: 14/11/2023 – 31/12/2023
All companies established or registered under the Companies Law, Cap. 113, all European Public Limited Liability Companies (SE) and all Cooperatives (hereinafter Organisations) or their officers/partners are invited to enter the UBO Register and proceed with the “Initial Registration”. That is, to update/ re-register their UBOs, even if they have already done so in the Interim System. During this period there will be no penalties.
Effectively, all previously inserted UBO related details entered on the Interim System must be re-entered onto the UBO Register with the current UBO status. To avoid penalties this must be done by 31/12/2023.
Period B: 01/01/2024 – 29/02/2024
Those who have not complied with the updating/re-registration of their UBOs into the UBO Register during Period A, will be subject to a penalty. The penalty will be calculated daily from 01/01/2024 until the date of submission*. After the resulting fine is paid, they will then be able to proceed with registration and/or suspension and/or change without any further financial burden.
* Penalties: By failing to comply, the legal entity and potentially each of its officers shall be subject to a fine of €200 and a further daily fine of €100 until the date of compliance, with a maximum charge of €20,000. Further, there criminal liability may be imposed.
Period C: 01/03/2024 onwards
During this Period, all actions based on Directive K.D.P. 112/2021 (as amended) will be available as follows:
• Updating the Register of Beneficial Beneficiaries;
• Confirmation of Beneficial Beneficiaries;
• Mismatch;
• Electronic Research in the Register of Beneficial Beneficiaries;
• Request for exemption from disclosure of information;
• Request for access to the details of a minor;
• Calculations of monetary charges where applicable.
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