On 5 September 2013 the Cyprus parliament passed laws  amending the Law Regulating Companies Providing Administrative Services and Related Matters of 2012 ("the Fiduciaries Law") and the International Trusts Law of 1992 to 2012 ("the International Trusts Law") to create a register of trusts established in Cyprus. The changes reflect the Cyprus authorities' commitment to transparency and sound regulation.

The main provisions of the new laws are summarised below.

Each of the supervisory bodies established under the Fiduciaries Law (CySEC, the Cyprus Bar Association and the Institute of Certified Public Accountants of Cyprus (the "Competent Authorities")) will maintain a register of trusts established by service providers they regulate containing the following information:

  • the name of the trust;
  • the name and full address of every trustee at all relevant times;
  • the date of establishment of the trust;
  • the date of any change in the law governing the trust to or from Cyprus law; and
  • the date of termination of the trust.

Any Cyprus-resident trustee of a trust governed by Cyprus law will be obliged to notify the relevant Competent Authority of the relevant information within fifteen days from the creation of the trust or the adoption of Cyprus law as the law governing the trust, as applicable. Subsequent changes in any relevant information, including termination of the trust or a change in the governing law from Cyprus law, must similarly be notified within fifteen days. In the event of termination of the trust or a change in the governing law from Cyprus law the register will indicate that the trust has been terminated and the information on the trust will be kept for five years.

Trustees subject to the Fiduciaries Law will be required to provide the relevant information regarding existing trusts within six months after the new law enters into force.

Service providers establishing trusts will be required to obtain documentary evidence of identity of the settlor, the trustees, the beneficiaries (or information on the class of beneficiaries including the beneficiaries to whom any distributions have been made pursuant to the trust) and others associated with the trust, as well as information on the activities of the trust, and keep this information available for inspection by the relevant Competent Authority on request.

The only change made to the International Trusts Law is to align it with the changes in the Fiduciaries Law.

These changes will enhance Cyprus's reputation and position as a fully transparent and attractive trust jurisdiction with a legal infrastructure which entrenches jurisdictional and asset protection for trusts whilst fully complying with all applicable EU and domestic anti-money laundering laws and regulations. Since trustees and fiduciaries are required to maintain proper records on trusts under existing anti-money laundering legislation, the proposed amendments should not create any additional administrative burden or reporting obligation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.