Update November 2023
The Registrar of Companies in Cyprus has announced the timeframe for the implementation and operation of the final version of the platform for the Electronic System of the Register of Beneficial Owners (the “Register”).
As of 14th November 2023, the platform is available to companies to proceed with the filing of the information of their beneficial owners in accordance with their obligations under the law.
The Register is available at https://ubo.meci.gov.cy/
The full implementation will be completed by 01 March 2024 and is split into 3 phases.
Phase A
14/11/2023 – 31/12/2023
All entities under the obligation to file the information regarding their UBOs (the “Obliged Entities”) should log in to the new platform and proceed with the filing/confirmation of the relevant information.
It is important to note that all Obliged Entities must proceed with the above and file the information with the new Register. Any companies that have already filed the data with the interim platform will be able to retrieve the said data, however they will still need to confirm and resubmit it to register on the new platform.
The filing may be performed either via the company account or via the personal account(s) of the officers/partners of the entity.
During Phase A, the entities will be entitled to (i) check and verify the information that has been filed with the Register, (ii) apply for an exemption to the publication of information and (iii) apply for exemption for filing of information, in accordance with the provisions of the applicable regulation.
During Phase A, the authorities and regulators will be allowed to perform a search of the database directly, whereas Obliged Entities will be allowed to perform a search for other entities, provided that they apply for and obtain the prior approval by the Registrar of Companies and pay the nominal fee of Euro 3,50 per search.
It must be borne in mind that any Organisations that have shown or intended to show due diligence in the interim solution will have to do so in the same manner in the final solution. The same applies to any Organisations that will have to declare their exemption in the final solution, whether they are listed on a regulated market subject to disclosure requirements under European Union law or are Organisations which are subject to equivalent international standards that ensure sufficient transparency of proprietary information – such Organisations will have to declare their exemption in the final solution.
During this period (i.e. until 31/12/2023) NO fines will be imposed.
Phase B
01/01/2024 – 29/02/2024
Any Obliged Entities that have failed to file/re-file the data for the final platform by the end of Phase A, (even if they had filed the data for the interim platform) shall be subject to penalties (penalties outlined below).
Any entities that have performed the necessary filing(s) within Phase A, will be allowed to make any amendments/verifications without any penalties.
During this period, the authorities and regulators will be allowed to perform a search of the database directly, whereas Obliged Entities will be allowed to perform a search, provided that they apply for and obtain the prior approval by the Registrar of Companies and pay the nominal fee of Euro 3,50 per search.
The penalties shall be applicable as of 01/01/2024 and calculated up to the date of submission of the data (i.e. the first submission with the final platform).
Phase C
01/03/2024 onwards
During Phase C, all services on the final platform (as per the applicable regulation) shall be fully available as per the below:
Updating the Register of Beneficial Owners
Confirmation of UBOs
Reporting of any inconsistencies for the data filed by any entity
Electronic Search in the Register of Beneficial Owners
Request for exemption from disclosure of information
Request for access to the details of a minor
Calculations of monetary penalties (where applicable)
Penalties
In accordance with the provisions of the applicable legislation, each Obliged Entity and each of its officers who fail to comply, shall be subject to a fine of two hundred Euro (€200) and a further fine of one hundred Euro (€100) for each day of continuation of the violation with a maximum charge of twenty thousand Euro (€20,000), notwithstanding any potential criminal liability.
Consequently, it is of vital importance for all officers to ensure that the filings have been properly made or that they have 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, so to avoid any potential liability and/or fine.
For more information as to the filing obligations and guidance as to the procedure to be followed for the creation and authentication of an account for the filing of the necessary information, as well as the steps to be followed for the filing procedure, please contact us at info@ikklaw.com.cy.
Comments