Who is considered a Beneficial Owner? According to the AML Law, a “beneficial owner” is any natural person who owns more than 25% of the shares, voting rights or ownership rights of a Cyprus company, directly or indirectly, or exercises equivalent control.

Following the introduction of the Beneficial Owners Register last year, in accordance with the provisions of the Directive on the Prevention and Suppression of Money Laundering and Terrorist Financing (Regulatory Administrative Act 257/2021) (the “Directive”) and in an attempt to enhance transparency in relation to the ownership and control of legal entities, on 13/05/2022 the Cyprus Securities and Exchange Commission (“CySEC”) announced the launch of the online platform for the Cyprus Beneficial Ownership Register of Express Trusts and Similar Legal Arrangements (“CyTBOR”). The CyTBOR became operational on 17/05/2022.

Beneficial owners in the case of Trusts are:

• The settlor;
• The trustee(s);
• The protector, if any:
• The beneficiaries, or where the individuals benefiting from the legal arrangement or entity have yet to be determined, the class of persons in whose main interest the legal arrangement or entity is set up and/or operates;
• Any other natural person exercising ultimate control over the trust by means of direct or indirect ownership or by other means;
• In the case of legal entitles such as foundations, and legal arrangements similar to trusts, the natural person(s) holding equivalent or similar positions to those referred to above.

Trusts

In the event the final beneficial owner is a trust or other legal arrangement similar to trust, the following information must be submitted:

• Name of trust or other legal arrangement similar to trust 
• Country of jurisdiction (i.e. the country where the trust is registered and not the country under the laws of which the trust is governed)
• List of Natural Persons with the following positions:
  
  i. Settlor
  ii. Trustee
  iii. Beneficiary
  iv. Protector
  v. Any other natural person who exercises ultimate control.

In case the country of jurisdiction is in Cyprus, the details of the below are mandatory to be completed for trusts:

      i. Settlor
      ii. Trustee
      iii. Beneficiary

In case where the country of jurisdiction of a trust is outside Cyprus at least one of the categories mentioned above must be completed. The same applies for other legal arrangements similar to trusts.

Deadlines for submission of UBO information                               

• Newly incorporated or registered companies or other legal entities must disclose their beneficial ownership information in the UBO register within 90 days from the date of their incorporation or registration.
• Changes to the beneficial ownership information previously disclosed must be notified to the UBO Register within 45 days from the date on which the relevant change became known to the entity involved.
• Confirmation of Beneficial Beneficiaries.
• Between 01/10 to 31/12 of each year, the Entities or their officials/partners should confirm the information contained in the UBO Register.
• Any discrepancies in the beneficial ownership information identified and flagged to an entity by the Registrar of Companies will need to be addressed and rectified within 30 days from the date of the relevant notification.