On 6/12/2024, the Department of Registrar of Companies and Intellectual Property (DRCIP) announced significant amendments to the Anti-Money Laundering Law (Amendment No. 2) 2024, published as Law No. 141(I)/2024. These changes impact the operation and compliance requirements of the UBO Register. Below are the key updates:

1. Monetary Penalties

• Financial penalties will now only apply to companies or other legal entities that fail to meet their UBO data submission obligations, as outlined under Law 188(I)/2007 and related directives. Individual directors and secretaries are no longer directly penalized for such failures.
• Directors or managing directors of non-compliant entities will, however, remain jointly and/or severally liable for the payment of penalties imposed on the entity.

2. Revised Penalty Rates

• Non-compliance will incur an initial penalty of €100 on the first day of the violation, followed by €50 for each subsequent day of non-compliance, with a maximum penalty of €5,000 per entity.

3. Registrar’s New Powers

• The Registrar may issue directives establishing procedures for administrative reviews or objections to penalty decisions.
• Non-compliant entities may face deregistration, akin to procedures under the Companies Law (Article 327) or the Partnerships and Business Names Law (Article 57(5)).
• The Registrar may seek court orders mandating compliance with UBO reporting obligations.

4. Extensions and Penalty Revocation

• The submission deadline for UBO data has been extended to January 31, 2025, for all entities. The deadline for verifying 2024 UBO data has been extended to March 31, 2025.
• As of February 1, 2025, failure to comply with UBO obligations will result in administrative and other penalties under the revised law and directives.
• Penalties imposed since April 1, 2024, will be revoked, with refunds issued as follows:
  • Online payments via JCC will be automatically refunded to the original payment card.
  • Payments made at the DRCIP’s cashier will require submission of specific forms and documents for refund processing.

5. Digital UBO Register

• The UBO Register remains fully electronic, and updates can only be submitted through the designated portal: https://ubo.meci.gov.cy.

6. Support for Businesses

• The extensions and penalty revocations aim to accommodate the predominantly SME business landscape in Cyprus and acknowledge the high compliance rates achieved.

These changes highlight the evolving compliance landscape in Cyprus, emphasizing stricter enforcement balanced with supportive measures for businesses.