UBO Update 2025: Key Changes in Cyprus Beneficial Owners Register
The Department of Registrar of Companies and Intellectual Property (ROC) has introduced critical updates to the Ultimate Beneficial Owners (UBO) Register framework in Cyprus. These changes, effective January 2025, reflect the government’s continued commitment to corporate transparency and compliance with anti-money laundering (AML) regulations.
Businesses operating in Cyprus must pay close attention to the new requirements, deadlines, and penalties to ensure compliance and avoid serious consequences. Below, we provide a detailed overview of the key updates and actionable steps your company should take.
1. Financial Penalties for Non-Compliance
Starting February 1, 2025, companies and other legal entities that fail to comply with UBO reporting requirements will face strict penalties:
•€100 fine on the first day of non-compliance.
•€50 fine for each additional day of delay.
•Maximum total penalty capped at €5,000 per company or legal entity.
This applies to both newly registered entities and existing companies that fail to update or confirm their UBO details.
Directors and secretaries are no longer jointly liable with the company for these fines, ensuring accountability.
2. Grace Period Extension
Recognizing the practical challenges faced by businesses, particularly SMEs in Cyprus, the Registrar has extended the deadlines for compliance:
•January 31, 2025: Final deadline for submitting or updating UBO information.
•March 31, 2025: Deadline for confirming UBO details for the 2024 reporting period.
This grace period provides businesses with additional time to review, verify, and submit their UBO data without facing penalties.
3. ROC Authority to Deregister Non-Compliant Entities
Companies and legal entities that repeatedly fail to comply with UBO obligations face severe consequences:
•The Registrar of Companies now has the authority to strike off companies from the register.
•Deregistration will proceed under Article 327 of the Companies Law or other relevant legal provisions for non-compliant entities.
What This Means for Businesses:
Failure to comply could result in loss of legal standing, operational disruption, and potential reputational damage. Companies should treat UBO compliance as a top priority.
4. Appeals Process Introduced
A new administrative process has been introduced to ensure fairness and accountability:
•Companies can now submit objections to penalties or fines imposed by the Registrar.
•The Registrar has the authority to review and reconsider such decisions through a formal administrative appeals process.
This provides companies with an opportunity to contest penalties they believe were issued in error, offering an additional layer of protection.
5. Refund of Past Penalties
As part of this update, penalties imposed between April 1, 2024, and December 31, 2024, are being revoked. Businesses that have already paid such fines are eligible for a refund:
•Online Payments (via JCC): Refunds will be processed automatically to the original payment card.
•Manual Payments: Businesses must complete Form KE1, providing:
•Proof of payment.
•Bank account details (IBAN) to which the refund will be credited.
This measure reflects the government’s understanding of the challenges businesses faced while transitioning to the UBO system.
Act Now to Ensure Compliance
To help your business navigate these changes, follow these actionable steps:
1.Verify UBO Information: Ensure all details regarding Ultimate Beneficial Owners are accurate and up-to-date.
2.Meet the New Deadlines:
•Submit UBO details by January 31, 2025.
•Confirm 2024 UBO information by March 31, 2025.
3.Prepare for Stricter Enforcement: Starting February 2025, financial penalties and deregistration risks will escalate. Be proactive in meeting compliance deadlines.
4.Claim Refunds for 2024 Penalties: If you have already paid penalties, complete the necessary paperwork to reclaim your funds.
5.Engage Compliance Experts: Work with experienced professionals to ensure smooth and timely submission of UBO data.
Why This Matters for Cyprus Businesses
The UBO Register is a cornerstone of Cyprus’s AML compliance strategy, aligning the country with EU and global standards for corporate transparency. Compliance is no longer optional but a legal requirement with far-reaching implications.
For businesses, these updates serve as a clear signal to:
•Prioritize regulatory compliance.
•Adopt robust internal processes to manage UBO reporting.
•Ensure directors and officers are aware of their responsibilities and liabilities.
Connor Corporate Services Ltd: Your Partner in Compliance
At Connor Corporate Services Ltd, we specialize in helping businesses navigate the complex regulatory landscape in Cyprus. Our team offers:
•Expert guidance on UBO reporting requirements.
•Full support in submitting and updating UBO data.
•Assistance with administrative reviews and appeals against fines.
•Strategic advice to ensure full compliance with the 2025 UBO Register updates.
📞 Don’t Wait Until the Deadline – Act Now!
Contact Connor Corporate Services Ltd today to ensure your business remains compliant and penalty-free.