Cyprus UBO Register 2025: Key Changes, Deadlines, and Penalties
The Registrar of Companies and Intellectual Property (ROC) has announced significant changes to the Ultimate Beneficial Owners (UBO) Register framework in Cyprus, coming into effect in 2025. These updates, aimed at improving corporate transparency and compliance, carry strict penalties for non-adherence. Below is a comprehensive overview of the amendments, deadlines, and actions required by businesses.
What is the UBO Register?
The UBO Register is a central database that records the Ultimate Beneficial Owners of companies and legal entities registered in Cyprus. Introduced under the EU’s 4th and 5th Anti-Money Laundering Directives (AMLD), it ensures transparency, accountability, and compliance in the fight against money laundering and terrorist financing.
An Ultimate Beneficial Owner is any individual who directly or indirectly owns 25% or more of a company’s shares or exercises significant control over the entity.
Key Changes Effective in 2025
Financial Penalties for Non-Compliance
Failure to update or confirm UBO information within the specified deadlines will now result in strict financial penalties:
•A €100 fine will be imposed on the first day of non-compliance.
•An additional €50 fine will accrue each day thereafter, up to a maximum of €5,000 per company or entity.
Important Note:
Directors and officers of the company will no longer be held jointly and severally liable for payment of these penalties.
Extended Submission Deadlines
Recognizing the administrative burden and challenges faced by many businesses, the Registrar has announced a grace period for compliance:
•The deadline for submitting UBO details has been extended to January 31, 2025.
•Confirmation of UBO details for the year 2024 must now be completed by March 31, 2025.
This extension primarily benefits SMEs, which form the majority of businesses in Cyprus, providing additional time to meet their legal obligations without incurring penalties.
Deregistration of Non-Compliant Entities
Companies and legal entities that fail to comply with UBO reporting requirements risk serious consequences:
•Non-compliant entities may be deregistered from the Cyprus registry under Article 327 of the Companies Law.
•This deregistration aligns with the provisions for striking off companies due to prolonged non-compliance, as outlined in the Companies Law and Partnership Law.
Action Required: Companies must ensure that UBO details are accurate, complete, and submitted on time to avoid deregistration and business disruption.
Introduction of Administrative Appeals Process
The Registrar now has the authority to establish a formal procedure for:
•Administrative reviews of decisions related to penalties.
•Submission of objections against imposed fines.
This measure provides businesses with an opportunity to contest penalties they believe were issued in error, ensuring due process and fairness.
Refund of Penalties Imposed in 2024
As part of the updated framework, the Registrar has announced the revocation of penalties imposed from April 1, 2024, onwards. Entities that have already paid these fines are eligible for a refund:
•Online Payments: Refunds will be automatically credited to the payment card used via JCC.
•Manual Payments: Businesses must submit Form KE1, along with supporting documentation, including proof of payment and bank account details (IBAN).
Important: If you have paid penalties in 2024, ensure that you follow the prescribed process to claim your refund without delays.
Why These Changes Matter
The updates to the UBO Register highlight the growing emphasis on corporate transparency and AML compliance in Cyprus. Failing to comply with UBO reporting requirements can result in:
•Hefty financial penalties.
•Potential deregistration of your company.
•Damage to your corporate reputation and legal standing.
For businesses operating in Cyprus, timely compliance with these obligations is essential to maintaining smooth operations and avoiding disruptions.
Steps to Ensure Compliance
Review UBO Data:
Ensure that your company’s UBO details are accurate, up-to-date, and submitted through the official portal: https://ubo.meci.gov.cy.
Meet the New Deadlines:
•Submit UBO details by January 31, 2025.
•Confirm 2024 UBO details by March 31, 2025.
Prepare for Administrative Appeals:
If your company faces a fine, familiarize yourself with the new appeals process to contest penalties.
Claim Refunds for 2024 Penalties:
Submit Form KE1 and required documentation to claim your refund for penalties paid since April 2024.
Connor Legal: Your Trusted Partner in Corporate Compliance
At Connor Legal, we specialize in helping businesses navigate complex regulatory requirements, including compliance with UBO reporting obligations. Our team of experienced legal professionals can assist with:
•Reviewing and updating UBO data.
•Submitting timely UBO declarations.
•Contesting penalties through the new administrative appeals process.
•Providing strategic advice to ensure full compliance with AML regulations.
Don’t wait until the last minute – act now to avoid penalties and safeguard your company’s good standing.
📞 Contact Connor Legal today for expert assistance with UBO compliance in Cyprus.
Stay compliant. Stay ahead.
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