Andria Papageorgiou

Announcement

CySEC Circular on EBA Guidelines: Enhancing Anti-Money Laundering Measures for Crypto-Asset Service Providers

We would like to draw your attention to Circular C640 (the “Circular”), issued by the Cyprus Securities and Exchange Commission (the “CySEC”) on the 26^th of April 2024, for the purposes of informing Regulated Entities, as these defined therein, about European Banking Authority’s Guidelines amending Guidelines EBA/2021/02 on customer due diligence and the factors credit and financial institutions
should consider when assessing the money laundering and terrorist financing risk associated with individual business relationships and occasional transactions under Articles 17 and 18(4) of Directive (EU) 2015/849 – Guidance to crypto-asset service providers to effectively manage their exposure to ML/TF risks

On January 16, 2024, the European Banking Authority (EBA) extended its Guidelines on ML/TF risk factors to CASPs, signifying a significant stride in the EU’s efforts to combat financial crime. The new Guidelines (EBA/GL/2024/01) underscore ML/TF risk factors and mitigating measures that CASPs need to adopt, recognizing the potential abuse of CASPs for illicit financial activities.

The risks associated with CASPs are manifold, ranging from the rapidity of crypto-asset transfers to the anonymity features embedded in certain products, heightening the susceptibility to ML/TF activities. Hence, CASPS must grasp these risks comprehensively and implement effective measures to mitigate them.

The amended Guidelines serve to equip CASPs with a framework for identifying these risks, offering a non-exhaustive list of factors indicating exposure to varying levels of ML/TF risk. By leveraging these risk factors, CASPs can gain insights into their customer base and pinpoint areas of vulnerability, thereby fine-tuning their mitigating measures, including the use of blockchain analytics tools.

Recognizing the interconnectedness of the financial sector, the Guidelines extend guidance to credit and financial institutions with CASPs as clients or exposure to crypto assets. This risk is exacerbated when institutions engage with unregulated crypto-asset service providers.

In essence, these Guidelines foster a unified understanding of ML/TF risks associated with CASPs and outline the requisite steps for CASPs and other financial institutions to manage these risks effectively. The amended Guidelines will come into effect on December 30, 2024.

In line with its overarching supervisory approach, CySEC urges all Regulated Entities to adhere to the Guidelines and demonstrate the appropriateness of their AML/CFT policies, controls, and procedures in light of identified ML/TF risks, thus ensuring robust measures to combat financial crime.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

AML, Announcement, COMPLIANCE, CYSEC, News, REGULATORYApril 26, 20240 comments

by Andria Papageorgiou

Abolishment of Annual Levy for Cyprus Companies

On February 21, 2024, the government issued an official statement regarding the abolition of the €350 annual company levy, effective immediately for the fiscal year 2024.

This strategic decision is aligned with broader economic initiatives aimed at fortifying businesses within our evolving global landscape and elevating Cyprus’s allure as a preferred destination for business activities.

Further information regarding the logistical aspects of this policy change will be communicated as it becomes accessible.

In case you need our legal support, please do not hesitate to contact us for further professional assistance.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

Announcement, Business Law, Company Law, Corporate, NewsFebruary 26, 20240 comments

by Andria Papageorgiou

New Membership Announcement

We are thrilled to announce a momentous achievement for our esteemed Founding Lawyer, Ms. Andria Papageorgiou, who has been elected by the Board of the Cyprus Bar Association (CBA) to serve on the prestigious Committee of Finance of the CBA. This appointment stands as a testament to Ms. Papageorgiou dedication, expertise, and unwavering commitment to excellence in the finance industry.

This Committee will be responsible, among others, for the below:

Organization of events (relevant to Finance);
Organization of educational activities (relevant to Finance);
Participation in events and activities of the Association or other organizations representing the CBA;
Preparation of Reports, Studies, Presentations, Draft Legislation;
Presentation at the House of Representatives on behalf of CBA;
Submission of proposals to the CBA and taking initiatives within their scope of responsibilities.

This appointment not only reflects Ms. Papageorgiou’s individual accomplishments but also highlights the caliber of talent and expertise within our Firm. It reinforces our commitment to fostering a culture of excellence and innovation that extends beyond our Firm’s boundaries.

The role of Ms. Papageorgiou in the Committee of Finance at the CBA will undoubtedly pave the way for groundbreaking initiatives and strategic decisions that will shape the future of the finance industry in Cyprus. We are immensely proud of her achievement and are confident that her invaluable insights and expertise will continue to drive positive change and growth within our Firm and the industry at large.

We look forward to witnessing the continued success and impactful contributions that Ms. Papageorgiou will bring to both the CBA and our Firm.

In case you need our legal support, please do not hesitate to contact us for further professional assistance.

Announcement, COMPLIANCE, News, REGULATORYDecember 1, 20230 comments

by Andria Papageorgiou

Important update on the Cyprus UBO Register

The Department of Registrar of Companies and Intellectual Property has announced that the final electronic system solution of the Register of Beneficial Owners of Companies and other legal entities (UBO Register) is now implemented. The final system solution replaces the existing system, which was implemented with effect as of 12 March 2021 as an interim measure for the collection of information on beneficial owners. Access to the final system solution begins on 14/11/2023. You may access the official announcement of the Registrar (which is in Greek) by clicking here.

PERIOD A: 14/11/2023 – 31/12/2023

All companies established or registered under the Companies Law, Cap. 113, all European Public Limited Liability Companies (SE) and all Cooperatives (hereinafter Organizations) or their officers/partners are invited to enter the final system and proceed with the “Initial Registration”. That is, to update/ re-register their UBOs, even if they have already done so in the interim solution system. During this period there will be no fines imposition.

In effect, this means that all previously inserted UBO-related details into the interim system must be processed again into the final system with the most up-to-date status as of 14/11/2023 and also record any updates thereafter. In order to avoid fines this must be done by 31/12/2023.

Period B: 01/01/2024 – 29/02/2024

Those who have not complied with the updating/ re-registration of their UBOs into the final system during Period A, will be subject to a fine. The fine will be calculated daily from 01/01/2024 until the date of submission (* see fines note below). After the resulting fine is paid, they will then be able to proceed with registration and/or suspension and/or change without any further financial burden.

*Fines: By failing to comply, the legal entity and potentially each of its officers shall be subject to a fine of €200 and a further daily fine of €100 until the date of compliance, with a maximum charge of €20,000. Further, there could be a criminal liability or prosecution of any person failing to comply.

Period C: 01/03/2024 onwards

During this period, all actions based on the relevant Directive (K.D.P. 112/2021, as amended) will be available as below:

• Updating the Register of Beneficial Beneficiaries
• Confirmation of Beneficial Beneficiaries
• Mismatch
• Electronic Research in the Register of Beneficial Beneficiaries
• Request for exemption from disclosure of information
• Request for access to the details of a minor
• Calculations of monetary charges where applicable

In case you have any questions, please do not hesitate to contact us for further professional assistance.

Announcement, Company Law, COMPLIANCE, Corporate, NewsNovember 21, 20230 comments

by Andria Papageorgiou

Andria Papageorgiou Law Firm Achieves Recognition in Legal 500: A Testament to Our Commitment to Excellence

Elevating Client Service and Establishing Benchmarks for Growth

In a landmark achievement that underscores our dedication to providing exceptional legal services, we are delighted to announce that Andria Papageorgiou Law Firm has been listed in the prestigious Legal 500 directory. This recognition not only reflects our commitment to excellence but also showcases our firm’s dedication to growth, improvement, and the relentless pursuit of serving our clients in the best possible way.

A Milestone of Excellence

Earning a spot in the Legal 500 is no small feat; it is a testimony to the expertise, hard work, and dedication of our legal professionals. The Legal 500 is widely regarded as one of the most authoritative guides to the world’s leading law firms, where inclusion is based on a rigorous evaluation of a firm’s performance, reputation, and client feedback.

This recognition serves as a testament to the high-quality legal services we offer across various practice areas. It is a validation of our commitment to staying at the forefront of legal developments, delivering strategic solutions, and achieving favorable outcomes for our clients.

Embracing Growth and Improvement

At Andria Papageorgiou Law Firm, growth, and improvement are not just words; they are the driving forces that shape our journey. The Legal 500 listing is not an end in itself but a significant milestone on our path of continuous advancement. This achievement motivates us to redouble our efforts and continue enhancing our legal capabilities to provide unparalleled value to our clients.

Our commitment to growth encompasses not only expanding our legal knowledge but also fostering a culture of collaboration, innovation, and adaptability. We believe that staying ahead of the curve in a constantly evolving legal landscape empowers us to serve our clients with the most relevant and effective legal solutions.

A Vision for Exceptional Client Service

Our vision extends beyond accolades and recognition. At the heart of our firm’s ethos is an unwavering dedication to serving our clients in the best possible way. From the moment a client walks through our doors, their objectives become our objectives. Our legal professionals work tirelessly to understand their unique needs, challenges, and goals, and to provide tailored strategies that deliver results.

We understand that legal matters can be complex and daunting. That’s why we prioritize clear communication, transparency, and a client-centric approach. Our success is deeply intertwined with the success of our clients, and we are committed to ensuring that they receive the highest level of legal counsel and advocacy.

A Shared Journey

Our achievement in being listed in the Legal 500 is not just a recognition of our law firm but also a celebration of the trust and support our clients have placed in us. It is a testament to the hard work and dedication of our legal professionals, whose passion for the law and commitment to excellence drives our firm forward.

As we move forward, we remain steadfast in our pursuit of growth, improvement, and the highest standards of legal service. The Legal 500 listing is a milestone, but it is also a reminder that our ultimate goal is to consistently exceed the expectations of our clients and set new benchmarks of excellence in the legal industry.

Thank you for being part of our journey. We look forward to continuing to serve you with the utmost dedication and excellence.

Please check out our listed profile here.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Announcement, NewsAugust 22, 20230 comments

by Andria Papageorgiou

Circular C589 – MONEYVAL’s report on money laundering and financing of terrorism risks in the world of virtual assets

We would like to draw your attention to Circular C589 (the “Circular”), issued by the Cyprus Securities and Exchange Commission (the “CySEC”) on the 18^th of July 2023, for the purposes of informing Regulated Entities, as these defined therein, about MONEYVAL’s Report on money laundering and financing of terrorism risk in the world of virtual assets (the “Report”).

A. Purpose:

The Report purports to present in an integrated manner an overview of the money laundering and financing of terrorism risks in the world of virtual assets (the “VAs”) and their service providers in MONEYVAL members. In order to do this, the Report includes the following:

horizontal analysis of MONEYVAL’s members’ level of compliance with the Financial Action Task Force (the “FATF”) Recommendation 15;
an overview of the measures taken to regulate and supervise virtual asset service providers (the “VASPs”) sector; and
features of the identified risks that criminals use VASPs and VAs to launder proceeds of crimes (i.e. exchanges, exchange offices, aggregators, and other cryptocurrency platforms including e-gaming, sports betting, and NTFs).

In particular, the Report integrates and analyses data obtained from MONEYVAL members across multiple issues, relating to (a) how members regulated the activity of issuance of Vas and operation of VASPs; (b) whether the Law Enforcement Authorities (LEAs) have adequate powers and tools to investigate, locate and impose interim measures in respect of Vas; (c) the types of VA platforms used for financial support of criminal activity; (d) examples of cases investigated by the relevant authorities with description of criminal schemes involving the virtual asset elements that have been identified; and (e) other data relevant to the goals of the study.

B. Main Provisions:

In view of the above, the Report has been structured into the following four (4) sections:

1. Horizontal review of compliance with FATF Recommendation 15:

FATF has published documents that are aimed at helping jurisdictions and the private sector to comply with the new AML/CFT requirements for VAs and VASPs (available here and here). Due to the peculiarities of the sector and the relatively recent adoption of the standard, the vast majority of MONEYVAL members have not yet fully implemented these requirements (i.e. of the 23 jurisdictions that have been assessed since June 2021 for their compliance with Recommendation 15, the majority require major or moderate improvements). In particular, further improvements are needed in assessing ML/TF risks, supervision, and the application of AML/CFT preventative measures.

2. Assessment of VA and VASP risks:

As already mentioned above, not all members have assessed the ML/TF risks posed by VAs and VASPs, or if such risk assessment has been conducted in many cases it lacks depth. In the case of Andorra that carried out its second national risk assessment back in 2020, it is noted that the risk assessment at the national level would start with an inventory (i.e. when VASPs must be licensed or registered, leaving the authorities with the tasks of estimating if and to which extent unregistered entities are still servicing clients in the respective jurisdiction) of the registered entities in the jurisdiction and determining the materiality of the VASP sector. However, in practice, jurisdictions experience challenges in identifying unregistered or unlicensed VASP activity in their jurisdiction.

In view of the above and following the first inventory of VASPs, a more in-depth analysis of the sector was undertaken. There is a risk that if the work conducted by Andorra indicates that there are no businesses operating domestically that should be registered, then VAs and VASPs become less of a focus. An assessment must be made about the use of VAs in the country even if there are no registered VASPs (for instance, whether customers in the domestic jurisdiction are obtaining services in another jurisdiction).

3. Risk-Based Approach Supervision of the VASP Sector:

The relevant section of the Report outlines the different approaches taken by members to license or register domestic VASPs and to implement a risk-based supervisory framework for the VASP sector. In brief, the following are noted:

VAs is defined as a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes and do not include digital representations of FIAT currencies, securities, and other financial assets that are already covered elsewhere in the FATF Recommendations.
VASP is any natural or legal person that provides as a business activity one or more of the following activities or operations for or on behalf of another natural or legal person: (i) exchange between virtual assets and FIAT currencies; (ii) exchange between one or more forms of virtual assets; (iii) transfer of virtual assets; (iv) safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and (v) participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.
The analysis shows that not all members included natural persons in the definition of VASPs.
A risk-mitigating measure for VASP activity is the application of market entry controls and of adequate risk-based supervision for AML/CFT purposes in the sector.
Recommendation 15 allows countries to choose between licensing or registration of VASPs, providing that at a minimum, VASPs would be required to be licensed or registered in the jurisdiction(s) where they were created.
MONEYVAL members have implemented different approaches to supervision (i.e. licensing or registration authority is not always the same authority that conducts the AML/CFT supervision of VASPs).
In supervising the VASP sector most of the MONEYVAL members are at the beginning of implementation. Not all supervisors are comprehensively resourced in terms of staffing and knowledge, and the risk-based approach is rarely tailored to a sector-specific risk assessment.
The volume and flow of cross-border transactions is one important element that supervisors should consider when determining the risk of the VASP sector and conducting supervision activities.
The availability of sanctions for VASP supervisors in MONEYVAL members differs in the scope and mounts of the sanctions that can be applied.

4. Law Enforcement and Operational Issues:

The capabilities and approaches of authorities in MONEYVAL countries to investigate ML/TF cases involving the use of VAs and to impose interim measures are examined in the relevant section of the Report. In particular, a number of case studies from the MONEYVAL region shed light on the use of VAs for money laundering purposes, such as the types of understanding crimes that are normally associated with such ML cases, as well as the modus operandi and typologies as to how such money laundering cases are perpetrated, are outlined within the Report. VAs are being used and can probably be used interchangeably with FIAT currencies when looking at typologies, as per the following investigated cases:

Theft of VAs through “typosquatting” – Isle of Man (in cooperation with UK and Netherlands);
Sale of fake VAs – Azerbaijan;
Use of money mules – Latvia;
Drug and arms dealing – Slovak Republic; and
Laundering of drug trafficking proceeds – Malta.

C. Next Steps:

CySEC considers the Report to be of assistance to the Regulated Entities engaging or seeking to engage in VA activities, in understanding their AML/CFT risks and obligations and how they can effectively comply with these obligations.

To this end, it is expected by CySEC that all Regulated Entities will study the Report and take its content into account when assessing AML/CFT risks, thereby improving the effectiveness of the measures and procedures applied.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

AML, Announcement, COMPLIANCE, CYSEC, News, REGULATORYAugust 4, 20230 comments

by Andria Papageorgiou

Updates surrounding Markets in Crypto-Assets Regulation (MiCA)

Following the recent approval of the Markets in Crypto Assets Regulation (the “MiCA”) in June 2023 and the corresponding implementing measures that needs to be prepared, we would like to draw your attention on the following news and press releases published by the European Banking Authority (the “EBA”) and the European Securities and Markets Authority (the “ESMA”) on the 12^th of July 2023:

A. EBA’s publications:

Consultation Paper on Complaints handling procedures for issuers of asset-referenced tokens (EBA/CP/2023/13);
Consultation Paper on information for the assessment of a proposed acquisition of qualifying holdings in issuers of asset-referenced tokens under MiCA (EBA/CP/2023/14);
Consultation Paper on EU market access of issuers of asset-referenced tokens (EBA/CP/2023/15); and
Statement on timely preparatory steps towards the application of MiCA to asset-referenced and e-money tokens.

B. ESMA’s Consultation Paper:

Consultation Paper on Technical Standards specifying certain requirements of MiCA (ESMA74-449133380-425)

In brief, allow us to summarise the following:

A. EBA’s News and Press:

1. Consultation Paper on Complaints handling procedures for issuers of asset-referenced tokens (EBA/CP/2023/13):

Scope: To ensure prompt, fair and consistent handling of complaints by holders of asset-referenced tokens (the “ARTs”) and other interested parties.
Main Provisions: It sets out definitions of complaints and complainants, requirements related to the complaints management policy and function, provision of information to holders of ARTs and on templates and recording. They then proceed with requirements about the procedure to investigate complaints and to communicate the outcome of the investigations to complainants and specific provisions for complaints handling involving third-party entities.
Next Steps: Comments to the Consultation Paper EBA/CP/2023/13 can be sent by clicking on the “send your comments” button on the EBA’s consultation page. The deadline for the submission of comments is on the 12^th of October 2023.

2. Consultation Paper on information for the assessment of a proposed acquisition of qualifying holdings in issuers of asset-referenced tokens under MiCA (EBA/CP/2023/14):

Scope: To regulate access to the EU market of ARTs by applicant issuers and persons intending to exercise significant influence on these undertakings via the acquisition of qualifying holdings.

Main Provisions:

- Under MiCAR, the offer to the public or the admission to the trading of an ART is reserved for legal persons or other undertakings established in the EU subject to the authorisation and approval of the publication of a white paper. The draft RTS on information for authorisation lay down the information requirements to be included when applying for such an authorisation. The information requirements cover the business model, and internal governance, including ICT risk management, liquidity, the reserve of assets, sufficiently good repute of the members of the management body, and of shareholders with qualifying holdings.
- The draft ITS set out the standard application letter, and the application template and clarify the process relating to the assessment of completeness of the application by the competent authority. As credit institutions are only required to receive approval to publish a white paper, the draft RTS and ITS do not apply to credit institutions.
- Consistent with the general regime applicable in the financial sector, MiCAR envisages a prudential assessment by competent authorities for the acquisition of qualifying holdings in issuers of ARTs that are not credit institutions. The draft RTS on the detailed content of the information to be included in the notification for the proposed acquisition clarifies the information requirements that are necessary for such an assessment.
- This information covers five criteria relating to (a) the reputation of the proposed acquirer, (b) the suitability of any person who will direct the target undertaking, (c) the financial soundness of the proposed acquirer, (d) the sound and prudent management of the target undertaking following the acquisition and (e) suspicion that money laundering or terrorist financing is committed or attempted or that it may increase following the acquisition.

Next Steps: Comments to the consultation paper can be sent by clicking on the “send your comments” button on the EBA’s consultation page. The deadline for the submission of comments is 12 October 2023.

3. Statement on timely preparatory steps towards the application of MICA to ART and e-money tokens (the “EMT”):

Scope: To encourage timely preparatory actions to MiCA application, with the objectives to reduce the risks of potentially disruptive and sharp business model adjustments at a later stage, to foster supervisory convergence, and to facilitate the protection of consumers.
Content:
- The Statement includes ‘guiding principles’ to which financial institutions (and other undertakings) carrying out ART/EMT activities are encouraged to have regard until the application date (disclosures to, and fair treatment of, potential acquirers and holders of ARTs and EMTs, the business model, sound governance, including effective risk management, reserve, recovery and redemption arrangements, and communications with the relevant competent authority).
- The Statement is accompanied by a template that financial institutions (and other undertakings) intending to carry out, or carrying out, ART/EMT activities, are encouraged to communicate, on a timely basis, to the relevant competent authority.

B. ESMA’s Consultation Papers:

Same-day press release publication by ESMA, in relation to the lunch of the first of three consultation packages (the “ESMA’s Consultation Paper”), on the technical standards specifying certain requirements.

Scope: Through the aforesaid consultation paper, ESMA is seeking input on proposed rules for CASPs related with their authorization, identification and management of conflicts of interest as well as the procedures on how CASPs should address complaints. The ESMA’s Consultation Paper‘s aim is to collect views, comments and opinions from stakeholders and market participants in regard to the appropriate implementation of MiCA.

Main Provisions:

- Provision of crypto-asset services by certain financial entities – Article 60

Specifies the notification requirements, that certain financial entities intended to provide crypto-asset service and for which they shall take into account when submitting the notification to the NCA of their home Member State (e.g. program of operations, description of the internal control mechanisms relating to AML/CFT obligations, description of the procedure for the segregation of clients’ crypto-assets and funds, etc.)

- Content of templates for the application for authorisation – Article 62

Sets out the requirements related to the application for the authorisation as a CASP as well as the information to be provided with the application that shall be submitted to the NCA of their home Member State. (i.e. program of operations, description of CASP’s governance arrangements, description of the procedure for the segregation of clients’ crypto-assets and funds, etc.).

- Complaints-handling procedures of CASPs – Article 71

Provides the requirements that CASPs shall follow when establishing and maintaining effective and transparent procedures for the prompt, fair, and consistent handling of complaints received from clients (i.e. filing a free-of-charge complaint by the client).

- Identification, prevention, management, and disclosure of conflicts of interest by CASPs – Article 72

Clarifies the policies and procedures that CASPs shall implement and maintain so as to be able to identify, prevent, manage and disclose any conflict of interest and disclose to their clients the general nature and sources of conflicts of interest as well as the steps that shall be taken to mitigate them.

- Assessment of intended acquisition of a qualifying holding in a CASP under Article 83(4)

Natural/Legal person who intends to acquire or increase a qualifying holding in a CASP shall notify the respective NCA through an assessment with the specific information in order for the relevant NCA to assess the proposed acquisition or increase the existing qualifying holding.

Next Steps: Comments to the ESMA’s Consultation Paper can be sent by clicking the heading ‘Your input – Consultations’. The deadline of the submission of the responses/comments is on the 20^th of September 2023.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Announcement, COMPLIANCE, News, REGULATORYJuly 19, 20230 comments

by Andria Papageorgiou

Registration of the Ultimate Beneficial Owner(s) (“UBOs”) to the Registrar of Companies

The Department of the Registrar of Companies and Official Receiver, has been appointed as the Competent Authority for the operation of the Registration of the UBOs of Companies and Other Legal Entities, based on the Prevention and Suppression of Money Laundering Activities and Financing Terrorism Law and similar Directives.

Hence, all registered/incorporate legal entities, have the obligation to submit electronically, the information of their UBOs under the Beneficial Owners Register operated in the Department of the Registrar of Companies and Official Receiver.

The Partnerships who are registered in the Company’s Registrar have also been included in the list of the entities with the above respective obligation.

UBO can be considered as the physical person who owns/control a legal Entity or the physical person to whom an activity or transaction is operated by a third party.

Direct ownership means a physical person who holds the 25% of shares plus 1 share or shares over 25%
Indirect ownership means a legal entity/ies who hold on behalf of the physical person/s the 25% of shares plus 1 share or shares over 25%

Based on the above, the Companies and Other Legal Entities (Partnership) incorporated before 12/03/2021, are obligated to submit in Registrar of Companies the information required for the real beneficial owners the latest by 12/03/2022.

The submission must be done electronically by the Company or any other Legal Entity (Partnership) via the Government Gateway Portal (Ariadni), that operates since 16.03.2021 without any fees.

The steps for the electronic submission, that need to be taken, are as follows:

Each Company or Partnership must create a profile as an Organization in the Government Gateway Portal (Ariadni) https://eservices.cyprus.gov.cy.
The Identification of the Entity’s / Partnership profile must be done by the physical presence of the Entity’s/Partnership representative at the following authorized centres:

Unified Service Center (CSR) – 13-15 Andrea Araouzou, 1421 Nicosia
District Post Offices (KEPO)
- Nicosia – 100 Prodromou, 2063
- Limassol – 16 June 1943 (former Gladstonos) 3022 Paphos –
- Aristotelis Savva 23, 8025
- Larnaca – Vassileos Pavlou Square, 6023
Citizens’ Service Centers (KEP)
- Nicosia – Georgiou Seferis, 2415 Engomi
- Limassol – Spyrou Araouzou 21, 3036
- Famagusta – Eleftherias 83, 5380 Deryneia

The following companies have an exception from the UBOs registration:

Companies that are licensed under a Regulated Market and are subject to notification requirements based on the European Union Legislation.
Companies which are, subject to equivalent international standards that ensure the ownership transparency.
Companies which submitted to the Registrar of Companies, the application for the deletion of their officers based on the article 327(2A)(a) of the Companies Law before 12/03/2021 or the companies that were without any officers before 12/03/2021.
Companies to which the liquidation procedure has started before 12/03/2021.

More details in relation to the submission of the Beneficial owner’s information in the Register and its operation can be found at the following links:

Regulatory Administrative Act No 112/2021
At the manual for the Interim Solution of the Register of Real Beneficiaries: CLICK HERE
To the answers on frequently asked questions in relation to the Real Beneficiaries: CLICK HERE
Το the announcements of the Registrar of Companies.

Based on the above the Ministry of Energy, Commerce and Industry and the Department of the Registrar of Companies and Official Receiver, are inviting you to proceed as soon as possible and before the 12 March 2022, with the submission of the Real Beneficiaries information at the Real Information Register. Please note that no further extension will be given.

During the collection and submission of the Beneficial Owners’ information, no penalties will be imposed against the entities, until 12/03/2022. Any changes as to information of the UBOs should be submitted within 14 days since the day of the information/changes is acknowledged.

In case you have any questions, please do not hesitate to contact us for further professional assistance.

Announcement, Company Law, Corporate, NewsNovember 17, 20210 comments

by Andria Papageorgiou

Circular C475: Sanctions Imposed by the Office of Foreign Assets Control (“OFAC”) of the U.S. Treasury Department

With Circular C475 and on continuation to the Circulars C266 and C337, CySEC draws your attention to the continuously updated list of the latest U.S. sanctions (available here), which inter alia, contains Cyber related Designations and Designations Updates.

Sanctions imposed individually by third countries are not enforceable in the EU, but CySEC expects the Obliged Entities falling under their supervision to take such measures into account, in the context of their relevant risk assessment and take proportionate action, including refraining from engaging with affected persons.

This Circular serves as a reminder to Obliged Entities of their obligations and particularly to CASPs, of the content of CySEC’s Policy Statement on the Registration and Operations of CASPs (“PS-01-2021”, available here), according to which CASPs, are inter alia expected to have in place policies, procedures, systems and controls to ensure compliance with a risk based approach (Paragraph 2.2.2.4 of PS-01-2021 elaborates further on the subject matter).

In case you have any questions, please do not hesitate to contact us for further professional assistance.

Announcement, NewsNovember 15, 20210 comments

by Andria Papageorgiou

New Incentive Scheme To Be Launched To Attract High Tech Companies

Cyprus Government presented recently a new proposal for the attraction of businesses and digital nomads, placing an emphasis on domains related to High-tech, Research & Development and Shipping.

The establishment of this proposal has an attempt to make Cyprus an attractive investment destination in the wider region and Europe and is expected to come into force as from January 2022.

In general the suggested main pillars of the new proposal are as follows:

A. Employment of Non-EU Nationals:

Employment of Non-EU Nationals with a General Minimum salary of €2.500 for highly skilled employees, while a university degree or at least 2 years experience are required. The work permits will be issued within one month and will last up to 3 years. The maximum work permits for Non-EU Nationals per Company is 70% for a 5-year period. The Companies will need to be able to employ Non-EU Nationals as supporting staff with salaries below €2.500 (Maximum 30% of the total supporting staff of the entity).

B. Employment of family members:

Non-EU employee’s spouses, who are employed in a Company operating under the provisions of the Business Facilitation Unit (excluding the supporting staff category) will also have immediate and free access to Cyprus labour market.

C. Digital Nomad Visa:

A new type of permit the so-called Digital Nomad Visa will be introduced for those who wish to live in Cyprus but work remotely for companies operating abroad. This Digital Nomad Visa will have a maximum quota of 100 applications. The visa will be granted for the period of 1 year with the right to renew it for another 2 years. The Digital nomads’ minimum threshold of funds coming from abroad (salary, bank statements, etc.) is €3.500, plus an additional 20% for the spouse and 15% for any minor.

D. Naturalization of Non-EU Nationals employed in Cyprus:

According to the new proposal, non-EU Nationals who are employed in Cyprus, will be able to apply for citizenship after 5 years of residency instead of 7. For those who have a very good knowledge of the Greek language with a proof of certification, will be able to apply for citizenship after 4 years.

E. Simplification of the process for obtaining Permanent Residency:

The actual proposal provides a simple process for obtaining Immigration Permits and Long-Term residency permits. Relevant Regulations of the Aliens and Migration Law will be amended in order to speed up the process of the applications.

F. AP Law Firm:

Andria Papageorgiou Law Firm can assist with any of the above matters. Therefore, should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Announcement, Employment Law, Immigration Law, NewsNovember 5, 20210 comments

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