Updates to the Cyprus Beneficial Owners Register

The Department of the Registrar of Companies and Intellectual Property (the Registrar) has announced changes to the Prevention and Suppression of Money Laundering and Terrorist Financing Law (L.188(I)/2007) (the AML Law) following amendments made on 6 December 2024.

Here are the key points:

Penalties for companies, not officers:

Financial penalties for failing to submit information on Beneficial Owners will now only apply to the company or legal entity itself, not the company’s officers.

Liability for directors:

Directors or managing directors of a company who fail to ensure compliance with Beneficial Ownership obligations will share responsibility with the company for paying any financial penalties imposed on the company.

Revised financial penalties:

• The initial fine has been reduced from €200 to €100.
• Daily penalties have been reduced from €100 to €50.
• The maximum total penalty is now capped at €5,000 instead of €20,000.

The Registrar now has the authority to:

• Remove a company from the register if it fails to meet its obligations under the AML law.
• Apply to the Court to issue a court order ordering the the compliance of any person with the obligations arising from AML Law.

Extended deadlines:

Recognising the practical challenges and financial implications, the deadline for submitting Beneficial Ownership information has been extended to 31 January 2025 for all companies and legal entities. Additionally, the 2024 data confirmation process has been extended to 31 March 2025.

From 1 February 2025, companies that fail to comply with these requirements will face administrative and other penalties under the amended AML Law.

Following the above arrangements, financial penalties imposed since 1 April 2024 will be revoked, and any amounts already paid will be refunded.

These changes aim to streamline compliance requirements while reducing the financial burden on companies, providing a clearer path forward for meeting Beneficial Ownership obligations.