On 16 December 2024, the Department of Registrar of Companies and Intellectual Property issued a public announcement on the significant changes to the framework governing the Beneficial Ownership Register. These changes follow the publication of The Prevention and Suppression of Money Laundering Activities (Amending) (No.2) Law of 2024, Law No. 141(I)/2024, on 6 December 2024.
Under the revised framework, monetary penalties will now be imposed exclusively on companies or legal entities that fail to fulfill their obligations to submit beneficial ownership information. Directors and secretaries will no longer face direct penalties for non-compliance. However, directors or managing directors of non-compliant companies may still be held jointly or separately liable for the payment of monetary penalties imposed on their companies.
In addition to this shift in responsibility, monetary penalties for non-compliance have been updated. Companies will now face a fine of €100 for the first day of a violation, with an additional €50 fine for each subsequent day the violation continues. The total penalty is capped at €5,000 per company or legal entity.
The amended law also introduces new enforcement mechanisms. The Registrar of Companies is now empowered to establish an administrative review process to allow appeals against monetary penalty decisions. Furthermore, the Registrar may strike off non-compliant companies or legal entities from the Beneficial Ownership Register if they fail to update their beneficial ownership details. This measure is aligned with the procedures outlined in the Companies Law and the Partnerships and Business Names Law. The amendments also grant the Registrar the authority to apply to the courts for compliance orders, requiring individuals or entities to meet their obligations under the law.
Recognizing the need for practical adjustments, the government, in consultation with the House of Representatives, has announced an extension to the deadlines for submitting beneficial ownership information. The new deadline for all companies and legal entities to submit their details is now set for 31 January 2025. Additionally, the verification process for 2024 must be completed by 31 March 2025, as per the updated Directive ΚΔΠ 423/2024 issued on 16 December 2024.
From 1 February 2025, non-compliance with these requirements will result in administrative and legal penalties under the provisions of Law 188(I)/2007, as amended.
As part of these reforms, the Registrar has also decided to revoke all monetary penalties imposed since 1 April 2024. Refunds will be issued to those who have already paid penalties.
This development reflects the government’s effort to balance strict regulatory compliance with the practical challenges faced by businesses in Cyprus. By adjusting the penalty framework and extending submission deadlines, the authorities are addressing the needs of companies while maintaining a strong attitude against money laundering and ensuring adherence to international standards.
In case you require any clarification or assistance in submitting the required information in the Register of Beneficial Owners of the Department of Registrar of Companies and Intellectual Property, as well as the Cyprus Trusts Beneficial Owners Registry overseen by the Cyprus Securities and Exchange Commission, please contact us at info@compliancemk.com.
