Michalis Sialounas
Further to our recent article, on Cyprus' Beneficial Ownership Register: Recent Amendments Explained, the final text of the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007–2023 (the “Law”) was officially published in the Cyprus Gazette, on Friday, 6 December 2024.
Remaining committed to providing timely updates on matters relevant to our audience, and as an update of our earlier newsletter, we hereby provide clarifications on the key revisions introduced in the final text of the amended Law.
Key Revisions to the Law
- Notification Requirements
As previously advised, companies and other legal entities will now receive a written reminder specifying the deadline for submitting or confirming beneficial ownership information. Notification will be sent at least thirty days prior to the deadline. The final text of the Law expands notification methods, allowing delivery via both postal letter to the registered office and email to the registered electronic address.
Furthermore, upon the submission or update of beneficial ownership information, the Registrar is required to confirm the change through an electronic message sent to the company or the individual responsible for the submission.
- Appeal Process
The final text introduces an administrative review and objection process, enabling entities to challenge penalties imposed for non-compliance. This mechanism provides an opportunity for fair reconsideration by the Registrar or relevant authority.
- Court Enforcement Powers
The Registrar is now powered to apply to the court for orders compelling entities to comply with their reporting obligations, ensuring stronger enforcement mechanisms. In addition, the monetary charges imposed under the provisions of the updated legislation, are collected as court-imposed fines, enforceable by the criminal court.
Furthermore, the Registrar may now strike off a company or other legal entity from the Register if it refuses, fails, or neglects to fulfill its obligations to submit information regarding the beneficial owners.
- Adjusted Financial Penalties
As noted in our previous newsletter, financial penalties will now be imposed solely on the company or other entities (such as associations, foundations, federations, and unions). Directors and managing directors, or their equivalents, will be jointly and severally liable for the penalties, while secretaries (or their equivalents) will no longer be held liable.
The revised penalties for non-compliance are as follows:
- Companies and other legal entities: The previous penalty of €200 with an additional €100 for each day of continued non-compliance (capped at €20,000) has been reduced to €100, with an additional €50 per day, capped at €5,000.
- Associations, Foundations, Federations and Unions: As above, with the maximum amount of penalty capped at €2,000.
* This publication is intended as a general guide for informational purposes only. It does not purport to be comprehensive or to render professional advice. Before making any decision or taking any action that may affect you or your business, bespoke advice should be obtained.
