Deletion of Fines for Failure to Comply with Cyprus Beneficial Owner Registry

The Parliamentary Committee on Energy, Trade, Industry and Tourism of the Cyprus House of Representatives decided on 8 October 2024 to delete all fines imposed for failing to submit the ultimate beneficial owner details to the Beneficial Owner Registry.

The proposal is to apply a one-time fixed fine of €250 for all entities that have failed to update the register so far (the fine will include Company, Directors and Secretaries).

During the session, the Registrar of Companies and Intellectual Property Irene Mylona-Chrysostomou, stated that fines amounting to €14 million have been imposed so far, whereby fines amounting to €600,000 have been paid.

Based on the agreement reached by all parties, these fines will be cancelled and instead, a fixed fine will be imposed for those who were not consistent with their obligations.

It was also proposed that a 50% decrease be imposed on all future fines, however, it was not yet decided.

Currently, based on the existing legislation, those who are not consistent with their obligations are subject to a fine of €200 on the first day and €100 per each following day of non-compliance with a maximum penalty of €20,000 for the company and its officers regardless of the criminal responsibility or prosecution.

According to the proposal, the fines could be reduced significantly by half to €10,000, which should be imposed one time, and not to each director and the company.

This update is very important since we have received complaints from many owners of companies incorporated in Cyprus who were late or were not made aware of their obligations.

If you require assistance updating and/or registering beneficial owner details with the Beneficial Owner Register please contact us via email at info@zambartaslegal.com or telephone at 00357 22 262 108.