Parliament Waives 2024 Cyprus UBO Fines
Connor Corporate Services Ltd is excited to share an important update regarding the recent changes in Cyprus’ Ultimate Beneficial Owner (UBO) regulations. These legislative amendments, unanimously approved by the Cyprus Parliament, mark a pivotal shift towards simplifying compliance while addressing the concerns of businesses operating in the country.
Key Changes in the UBO Framework
2024 Fines Waived
In a move welcomed by the business community, fines imposed in 2024 for failing to comply with UBO registration requirements have been fully waived. This provides a much-needed reprieve for companies and legal entities, offering them a fresh start to meet their compliance obligations without the burden of past penalties.
Revised Penalty Structure from 2025
From 2025 onwards, non-compliance with UBO regulations will attract a maximum cumulative fine of €5,000, up from the previous limit of €2,000. While stricter, this adjustment aims to ensure compliance while remaining proportionate to the gravity of violations.
Enhanced Enforcement Measures
The legislative changes empower the Companies Registrar to petition the court to enforce compliance with UBO obligations. Additionally, fines for non-compliance will now be treated as court-imposed, ensuring transparency and due process for all affected entities.
Protection for Company Secretaries
One of the standout provisions of the new law is the protection it offers to company secretaries. As long as they act in good faith, secretaries will be exempt from criminal liability in cases of false or misleading declarations of UBO information.
Focus on Modernization
The amendments also emphasize the need to modernize and streamline UBO registration processes. Electronic governance will play a key role, reducing inefficiencies and making compliance easier for companies.
Support for SMEs
The legislation recognizes the challenges faced by small and medium-sized enterprises (SMEs), aiming to alleviate their compliance burden while targeting shell companies and entities engaging in opaque practices.
Implications for Businesses
The updated UBO framework signals a clear commitment from the Cyprus government to create a fairer and more transparent business environment. Companies that previously faced challenges with compliance now have the opportunity to rectify their status without fear of penalties for 2024.
However, moving forward, stricter enforcement measures mean that businesses must prioritize compliance to avoid significant fines and legal complications.
How Connor Corporate Services Ltd Can Help
At Connor Corporate Services Ltd, we specialize in assisting businesses with corporate compliance, including UBO registration and related matters. Our team offers tailored support to ensure your business remains aligned with the latest regulatory requirements. Our services include:
•UBO Compliance Audits: Reviewing and updating your UBO information to ensure accuracy.
•Guidance on Legal Obligations: Navigating the complex UBO framework with ease.
•Proactive Monitoring: Keeping your company compliant with changing regulations.
•Representation in Disputes: Offering legal support in cases of UBO-related penalties or enforcement actions.
Take Action Now
This is an excellent opportunity for businesses to address UBO compliance without the pressure of past fines. If you have questions about how these changes impact your company or need expert assistance with compliance, contact Connor Corporate Services Ltd today.
We are committed to supporting your business every step of the way, ensuring compliance and fostering success in Cyprus’ dynamic regulatory environment.
Stay ahead with Connor Corporate Services Ltd – Your Partner in Corporate Compliance.