Companies in Cyprus are urged to take proactive steps to ensure compliance with Ultimate Beneficial Owner (UBO) reporting requirements by the end of the year. This follows a significant agreement between the government and Parliament to cancel substantial fines imposed earlier in 2024 for delays in submitting UBO information.
According to a report by Politis, the Government and the Parliament have reached a consensus to eliminate imposed penalties, which in some cases reached €20,000 per company. Following discussions, a revised legislative proposal will be presented in Parliament for approval, incorporating amendments supported by all parties involved.
According to Kyriacos Hadjiyiannis, Chair of the Parliamentary Commerce Committee, the government has shown a willingness to align with Parliament’s approach to address outstanding UBO reporting obligations. “This development represents a constructive step forward,” he remarked, highlighting that the new framework will suspend existing penalties and set clear guidelines for future compliance.
The penalties had initially been criticised as excessive, with many companies arguing that operational challenges and administrative workloads hindered timely compliance. Andreas Pasiourtidis, an MP for AKEL, applauded the decision to cancel these fines, noting that enforcing them could have forced some businesses to cease operations.
The revised approach proposes a maximum fine of €5,000 for future non-compliance, providing businesses with greater flexibility to meet their obligations without excessive financial penalties.
Panicos Leonidou, a DIKO MP, emphasised the importance of the coordinated effort between the Ministry of Commerce and the Registrar of Companies. He confirmed that past fines would be annulled, and only future obligations will be enforced under the updated penalty structure.
Stavros Papadouris, a Cyprus Greens Party MP, also welcomed the agreement, describing it as positive news for affected companies. However, he urged businesses to adopt a forward-looking approach, acknowledging that UBO reporting is now a permanent requirement.
As the end-of-year deadline approaches, businesses are encouraged to prepare and submit their UBO data promptly. The agreement provides a critical opportunity for companies to address their compliance requirements without the burden of excessive penalties.
With the upcoming parliamentary vote expected to formalise these changes, the resolution marks a new phase in Cyprus’s commitment to corporate transparency and regulatory adherence.
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.
Source: Politis. ‘Συμφωνία Κυβέρνησης – Βουλής για διαγραφή προστίμων πραγματικών δικαιούχων.’ Available at: https://politis.com.cy/politis-news/oikonomia/865841/symfonia-kyvernisis-voylis-gia-diagrafi-prostimon-pragmatikon-dikaioychon.
