The amendments described below were published in the Cyprus Gazette on 6 December 2024 and are now in force. In the law as enacted, the maximum total penalty was set at €5,000, and financial penalties imposed from 1 April 2024 were revoked and refunded. The submission deadline was extended to 31 January 2025, and the 2024 confirmation process to 31 March 2025.
In late 2024, Cyprus introduced significant amendments to the Prevention and Suppression of Money Laundering and Terrorist Financing Law affecting the Beneficial Ownership Register. The amendments were published in the Cyprus Gazette on 6 December 2024 and are now fully in force. The target: the central register of beneficial owners, and specifically the penalty regime that had been generating friction between the Registrar of Companies and the entities it regulates.
The direction of the change is unambiguous. Penalties come down, liability narrows, and the Registrar gains the power to unwind fines already issued. For founders with Cyprus companies, this is a shift worth understanding, because beneficial ownership compliance sits directly in the path of your banking relationships and your structure's credibility.
Notification Changes: The Reminder Is Now the Warning
Under the previous framework, the Registrar followed a notification process before administrative penalties were imposed. The amended law replaces that procedure with a written reminder issued at least thirty days before the filing deadline. The reminder itself serves as the warning, and no separate notification is issued before a financial penalty is imposed.
Companies and other legal entities receive a written reminder specifying the deadline for submitting or confirming beneficial ownership information, at least thirty days before the deadline falls due. Notifications are deemed received three working days after dispatch.
The practical effect matters more than the procedural detail. The reminder is the warning. There is no second notice before a penalty lands.
The Registrar Can Now Withdraw Penalties
The Registrar gains authority to partially or fully revoke penalties imposed for non-compliance with beneficial owner reporting. Penalties levied on inactive or dormant companies that have since been removed from the register may also be withdrawn.
The amendments also strengthen the Registrar's broader enforcement powers. In addition to revoking penalties where appropriate, the Registrar may establish procedures for administrative reviews and objections, apply to the Court for orders compelling compliance, and ultimately strike off companies or other legal entities that persistently fail to meet their beneficial ownership obligations.
This is the most founder-relevant power in the amendments. Entities that accumulated penalties under the previous regime, particularly dormant structures caught by filing obligations they were not actively monitoring, now have a route to resolution.
Penalty Amounts Come Down Significantly
The penalty for failing to submit beneficial ownership information is reduced from €200 to €100. The daily penalty for continued non-compliance is halved from €100 to €50, and the total penalty cap falls to a fraction of its previous €20,000 level.
In the final law published in the Gazette on 6 December 2024, the maximum total penalty was set at €5,000. Penalties imposed from 1 April 2024 were revoked, with amounts already paid refunded.
Liability Narrows to the Entity
Financial penalties will now be imposed solely on the company or other legal entity, including associations, foundations, federations, and unions. Directors and managing directors, or their equivalents, remain jointly and severally liable for those penalties unless they can demonstrate that they exercised due diligence and that the breach was not attributable to their own act, omission, or negligence. Company secretaries, or their equivalents, are no longer held personally liable at all.
For founders, the distinction is meaningful. The compliance obligation stays with the people who control the entity. The exposure of administrative officers who execute filings but do not make decisions is removed.
What the Amendments Signal
These changes reflect a shift towards a more proportionate penalty structure, designed to encourage compliance while reducing the financial burden on companies and legal entities. The regulators are signalling a preference for corrective action over punitive measures.
Excessively punitive administrative penalties rarely improve compliance. The amended framework instead places greater emphasis on encouraging timely reporting while preserving proportionate enforcement where obligations continue to be ignored.
The real cost of a beneficial ownership failure was never the fine. It is what an incomplete register entry does downstream. Royal Pine
The Royal Pine Perspective
A reduced penalty cap sounds like good news, and it is. But the fine was never the real exposure. An incomplete or inaccurate register entry creates costs that never appear on a penalty notice: delayed bank onboarding, extended compliance reviews, and questions from counterparties at exactly the wrong moment in a transaction.
For founders whose structure is handled by a firm with proper internal controls, none of this should ever reach them. The filing happens, the confirmation happens, the register stays clean. If you are currently the person who receives the Registrar's reminder emails, that is worth noticing.
The amendments were published in the Cyprus Gazette on 6 December 2024 and are now fully in force. While the revised framework significantly reduces administrative penalties, founders should view these changes as an opportunity to strengthen compliance rather than relax it. Accurate beneficial ownership reporting remains essential for banking relationships, due diligence, and maintaining the credibility of a Cyprus corporate structure.
