Cyprus parliament approves waiver of 2024 UBO Fines
Connor Legal is pleased to provide an important update for our clients and stakeholders regarding the recent developments in the Cyprus Ultimate Beneficial Owner (UBO) registry regulations. In a significant move, the Cyprus Parliament has unanimously approved a legislative proposal that waives fines imposed during 2024 for non-compliance with UBO registration requirements, while also revising future penalties.
Key Highlights of the New Law
Waiver of 2024 Fines
Companies and legal entities that faced fines in 2024 for failing to submit UBO details can now breathe a sigh of relief. The law provides for the total cancellation of these penalties, provided that entities comply with their obligations promptly.
Revised Penalty Framework
Starting in 2025, the maximum cumulative fine for non-compliance will increase from €2,000 to €5,000. The revised penalties aim to encourage compliance while being more proportionate and manageable for businesses.
Administrative and Judicial Reforms
•Financial penalties for non-compliance will now be treated as court-imposed fines, enhancing transparency and ensuring due process.
•The Companies Registrar will have the authority to petition the court to enforce compliance with UBO obligations.
Protection for Company Secretaries
The law introduces provisions to exempt company secretaries from criminal liability in cases of false or misleading declarations of UBO information, as long as they act in good faith.
Modernization of Processes
The legislative amendments emphasize the need for streamlined procedures and electronic governance, addressing longstanding inefficiencies in the UBO registration system.
Focus on SMEs and Fairness
Lawmakers highlighted that the changes aim to alleviate the disproportionate burden on small and medium-sized enterprises (SMEs) while targeting shell companies and entities engaging in opaque practices.
Industry Reaction and Implications
This legislative update reflects the government’s commitment to fostering a more equitable business environment in Cyprus. By waiving past fines and implementing a fairer penalty structure, the changes address concerns raised by businesses over the previous UBO registration system.
For companies and legal entities, this development underscores the importance of compliance with UBO registration obligations. Non-compliance will attract significant penalties in the future, and enforcement will be more stringent.
Connor Legal’s Expertise
At Connor Legal, we provide comprehensive support to ensure our clients meet their UBO registration requirements and avoid potential fines. Our team of experienced lawyers can assist with:
•Reviewing and updating UBO details.
•Navigating the legal framework for compliance.
•Representing clients in disputes related to UBO penalties.
If you need assistance or wish to learn more about how this legislation impacts your business, do not hesitate to contact us.
Connor Legal remains dedicated to keeping our clients informed and ensuring your business stays compliant with Cyprus law.
