1. Notice to submit Beneficial Owners data to the Register of Beneficial Owners, and imposition of fines for failure to submit
The Department of Registrar of Companies and Intellectual Property, following the announcement "Operation of the register of Beneficial Owners in the interim solution" dated 05/08/2022 and in view of the upcoming implementation of the final solution of the electronic system of the Register of Beneficial Owners that is expected to take place around the end of October 2023, calls all companies that have been incorporated or registered according to Companies Law Cap. 113, European public limited liability companies (SE), or the Partnerships Law (as well as their officers/partners), to submit the details and information of their beneficial owners on the Register of Beneficial Owners of Corporate and Other Legal Entities by September 30, 2023, in order to avoid the imposition of fines and penalties and/or the initiation of criminal proceedings due to non-compliance.
In addition, with the launch of the final solution system, a one (1) month period will be given for confirming and completing the data that have been submitted to the interim solution and will be migrated onto the final solution, from all entities. Within this period requests for exemption of disclosing information as well as the grounds for due diligence must be submitted.
It is highlighted that at the end of the one (1) month period, the automatic imposition of fines and penalties for non-compliant companies will commence through the final solution of the electronic system of the Register of Beneficial Owners.
It is reminded that, notwithstanding the criminal liability or prosecution of any person, in the event of failure to comply, the corporate or other legal entity and each of its officers shall be subject to a fine of two hundred Euros (€200) and a further fine of one hundred Euros (€100) for each day of continuation of the violation with a maximum charge of twenty thousand Euros (€20,000).
It must be noted that, an officer of a corporate or other legal entity shall not be subject to a fine if he had exercised due diligence to comply with the provisions of the N.188(I)/2007 and of the Directive P.I. 112/2021, as amended, and the violation is not due to any act or omission or negligence on his part.
For any clarifications or enquiries related to the Register of Beneficial Owners, you can visit the Register of Beneficial Owners section which contains detailed information on the process of creating and authenticating profiles, submitting BO details, imposition of fines, FAQ's, guidance, legislation. In case your question is not answered by the Registrar's guidance, you may submit in writing your query to the email address Ubos@meci.gov.cy.
2. How we can assist
Hefty penalties, including criminal liability have been imposed for non-compliance, and as such all measures should be taken so that companies come to full compliance of Beneficial Ownership disclosures requirements. We at Savva & Associates have extensive experience dealing with this and other compliance matters, and can assist you with meeting your statutory reporting obligations in Cyprus, including advising you on how to maximise your level of confidentiality in parallel to meeting reporting obligations.
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.