Cyprus launches UBO register
01/02/2021
Introduction
Cyprus has elevated its ultimate beneficial owner (UBO) reporting status by implementing all of the mechanisms for the creation, operation and maintenance of a UBO register.
The UBO register is a requirement emanating from the amended Fourth EU Anti-money Laundering Directive (4AMLD).
The 4AMLD was transposed into national legislation on 3 April 2018 by the Prevention and Suppression of Money Laundering and Terrorist Financing Law (13(I)/2018), Article 61A(4)(a) of which specifically provides for the introduction of a UBO register.
According to a 21 December 2020 announcement by the Companies Registrar Department, as amended, relevant entities must submit information on their UBOs for inclusion in a newly created and centralised UBO register within six months of 22 February 2021.
The 4AMLD imposes certain minimum standards for all member states. As part of the European Union's efforts to curtail the flow of illicit funds, these standards were recently enhanced by the Fifth EU Anti-money Laundering Directive (5AMLD).
Similar initiatives are also in the process of being implemented in all Organisation for Economic Cooperation and Development countries and may become accepted practice internationally.
Comment
The creation of UBO registers has been protracted, but entities must now prepare for their introduction in Cyprus.
The relevant announcements by the RoC highlight that implementation is imminent and that legal persons will have six months from 22 February 2021 to file the requested information.
Corporate and other legal entities incorporated in Cyprus must review their structures and ascertain which individuals will qualify as their UBOs. This exercise should be undertaken on a case-by-case basis and must be conducted before the imposed deadline.
Guidelines expanding on the UBO registration process, as well as applicable penalties for non-compliance, are expected to follow in due course, but it is suggested that the process of ascertaining and collecting UBO information be commenced without delay.
It is nevertheless important to keep in mind that law firms and other professionals have been legally required to keep such information for many years. The real novelty in this latest step towards transparency will be the eventual public access to UBO registers and how this will intertwine with privacy and data protection concerns.
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.