by Andria PapageorgiouCyprus on Netflix: A New Era for the Olivewood Scheme
Stelana Kliris’ latest film, “Find Me Falling,” marks a significant milestone as the first Cypriot movie to stream on Netflix. This achievement brings notable actor Harry Connick Jr. to Cyprus, spotlighting the success of the Cyprus Olivewood Scheme.
“Find Me Falling,” a co-production by Jupiter Peak Productions (USA) and Meraki Films (Cyprus), with support from Cyprus’ Deputy Ministry of Culture and the Cinema Advisory Committee, was entirely filmed across Cyprus, from Peyia to Nicosia. The production team consisted predominantly of local talent, with over 150 crew members from Cyprus, alongside a few from the US and Greece.
Launched in September 2017, the Olivewood Scheme aims to attract international film, documentary, and television productions to Cyprus, enhancing investment and employment while promoting the island as a cultural and tourist hub. This initiative aligns with European Commission Regulation 651/2014, providing a blend of grants and tax incentives to qualifying productions.
A. Incentives Overview
Cash Rebate and Tax Credit: Producers can opt for either a cash rebate or a tax credit, not both, under the scheme. Additional incentives, such as tax allowances for infrastructure and equipment investments, and VAT returns, apply irrespective of this choice.
- Cash Rebate: Up to 45% of eligible expenditures incurred in Cyprus, contingent on the production’s cultural test score. The rebate is granted post-filming, upon submission and review of the audit report by the filming committee.
- Tax Credit: Up to 35% of eligible expenditures, with unused credits carried forward for up to five years, subject to a cap of 50% of the applicant’s taxable income in the production year.
- Tax Allowance for Investments: Small and medium-sized enterprises can deduct up to 20% (small enterprises) or 10% (medium-sized enterprises) of their investment in film infrastructure and equipment from their taxable income. Investments must remain in Cyprus for at least five years.
- VAT Refund: VAT incurred on qualifying production expenditures can be refunded. Cyprus VAT rates are 19%, 9%, and 5%, with refunds processed within six months of the VAT declaration deadline or the VAT return application date.
B. Scheme Extension and Impact
In September 2023, the Cyprus government extended the Olivewood Scheme for another three years, following a favorable cost-benefit analysis. An initial investment of 1 million euros yielded a return of 5.5 million euros, justifying the extension and an increased rebate rate of 45%.
C. Benefits of Filming in Cyprus
The Olivewood Scheme offers filmmakers cost-effective production opportunities against Cyprus’ stunning landscapes, from crystal blue seas and sandy beaches to breathtaking mountains and modern cities. This initiative has elevated Cyprus as a preferred filming location and opened new avenues for investment in the local film industry.
Should you have any further questions, please do not hesitate to contact us at [email protected].
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.
by Andria PapageorgiouUnderstanding Non-Governmental Organizations (NGOs)
Non-governmental organizations (NGOs), also known as civil society organizations, are groups or entities of volunteers that operate independently from any government. These organizations are established to contribute at community, national, or international levels, aiming to fulfill humanitarian purposes or environmental protection goals.
The Legal Framework for Establishing and Maintaining NGOs in Cyprus
In Cyprus, there are three primary options for establishing an NGO: Clubs, Foundations, and non-profit companies limited by guarantee. Clubs and Foundations are governed by the Clubs and Foundations Law (Law 104(I)/2017, as amended), with the latest amendment in 2020. Non-profit companies are regulated under the Cyprus Companies Law, Cap. 113.
If any of these entities are approved by the Council of Ministers of the Republic of Cyprus as a ‘charitable organization,’ their income is exempt from taxation. Donations to such approved organizations may also be tax-deductible under the Law on Income Tax (Law 118(I)/2002), though the tax treatment of donations depends on the laws of the donor’s jurisdiction.
Characteristics and Obligations of Different NGO Structures
Clubs:
- Require at least 20 members to form and must serve public purposes without commercial aims.
- Governed by their constitutional documents and the law, clubs must register with the Ministry of Interior’s Registrar of Clubs.
- Clubs must submit audited accounts annually and report changes in membership and board composition.
Foundations:
- Managed by a minimum of three persons, Foundations must register their incorporation act, detailing their purpose and assets.
- Must hold property valued at no less than €1,000, dedicated to non-profit purposes such as education, health, or environmental protection.
- Foundations are overseen by Commissioners or a Board of Directors and must file annual audited accounts.
Non-Profit Companies Limited by Guarantee:
- Established under the Companies Law, Cap. 113, these companies limit members’ liability to their guaranteed amount.
- Must state non-profit purposes in their memorandum of association and prohibit profit distribution to members.
- Managed by a Board of Directors, these companies must file annual audited accounts with the Registrar of Companies.
Conclusion
Establishing an NGO in Cyprus requires careful consideration of the legal form and compliance with specific regulatory requirements. Each type of entity—Club, Foundation, or non-profit company—offers distinct advantages and obligations. Proper registration and adherence to governance and reporting standards are crucial for maintaining the status and benefits of an NGO in Cyprus.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: Please note that the information provided above is intended as an overview of the four types of non-profit organizations and should not be regarded as legal advice. To ensure proper understanding and compliance with the specific requirements for registering a non-profit company, society, foundation, or club, it is strongly recommended to seek professional legal advice. 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.
by Andria PapageorgiouDORA: Why it is relevant & why is it relevant to you?
The Digital Operational Resilience Act (DORA) is a significant development in EU regulation, compelling financial entities to ensure consistent cybersecurity and operational resilience maturity levels across all their operations within the EU. With a two-year preparatory phase, organizations face a significant task of implementation and demonstration of compliance.
To navigate this transition effectively, financial institutions must conduct comprehensive gap assessments to gauge their readiness vis-à-vis DORA, identifying areas necessitating further investment and prioritization. Proactively addressing these gaps positions businesses to meet more complex requirements such as supply risk management, threat intelligence, and advanced security testing, thus gaining a competitive edge in the market.
DORA marks a substantial shift for entities under ESMA or EIOPA supervision and banks already subject to existing EBA guidelines on banking supervision. Moreover, it extends its scope to encompass previously less regulated stakeholders in the financial sector, including crypto-asset service providers, intermediaries managing alternative investment funds, crowdfunding service providers, cloud-service providers, and ICT third-party service providers.
One of DORA’s key focuses is on third-party risk management, necessitating entities to ensure the resilience of their critical ICT third-party service providers. This requires close collaboration and joint efforts to satisfy regulatory expectations, particularly in supporting the delivery of essential business services.
DORA officially entered into force at the beginning of 2023, initiating a two-year implementation period. Financial entities are thus expected to achieve compliance with the regulation by early 2025. As this deadline approaches, proactive engagement with DORA compliance becomes essential to avoid penalties and maintain operational continuity.
In light of these developments, Andria Papageorgiou Law Firm is committed to assisting organizations in navigating the complexities of DORA compliance. With our outsourced DPO services and regulatory compliance consulting, tailored to address the specific requirements of DORA, we ensure that businesses are well-equipped to meet regulatory obligations and uphold operational resilience in an evolving digital landscape.
Contact us today at [email protected] to learn more about how we can support your journey toward DORA compliance.
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.
by Andria PapageorgiouCySEC 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 26th 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 [email protected].
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.
by Andria PapageorgiouAndria 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 [email protected].
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.
by Andria PapageorgiouCircular 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 18th 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 [email protected].
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.
by Andria PapageorgiouA Step-by-Step Guide to Setting Up a Partnership in Cyprus
A. Introduction:
Setting up a partnership in Cyprus can be an excellent way to establish a business and benefit from shared responsibilities and resources. Whether you’re looking to start a general partnership (GP) or a limited partnership (LP), this step-by-step guide will help you navigate the process and ensure compliance with Cyprus laws.
B. Process:
- Choose the Partnership Type: Before proceeding, it’s crucial to decide on the type of partnership that best suits your business goals. In a GP, all partners have unlimited liability and share equal management responsibilities. An LP, on the other hand, involves general partners with unlimited liability and limited partners with liability limited to their investment.
- Select a Name for Your Partnership: Choose a unique and distinguishable name for your partnership. It should not be similar to any existing businesses in Cyprus to avoid confusion. Ensure that your chosen name complies with the requirements set by the Department of Registrar of Companies and Official Receiver.
- Draft a Partnership Agreement: While not legally required, drafting a partnership agreement is highly recommended to establish clear guidelines and avoid potential disputes. The agreement should include key details such as the partnership’s purpose, capital contributions, profit-sharing arrangements, decision-making processes, and mechanisms for resolving conflicts.
- Register Your Partnership: To register your partnership, you’ll need to submit the necessary documents to the Department of Registrar of Companies and Official Receiver.
- Obtain Necessary Permits and Licenses: Depending on the nature of your business activities, you may need to obtain specific permits or licenses from relevant authorities in Cyprus.
- Register with the Tax Department: Once your partnership is registered, you must register with the Cyprus Tax Department for tax purposes. You will receive a Tax Identification Number (TIN) for your partnership. Comply with all tax obligations, including filing tax returns, maintaining proper accounting records, and paying taxes in a timely manner.
C. Conclusion:
Setting up a partnership in Cyprus involves a systematic approach to ensure legal compliance and a solid foundation for your business. By carefully following the steps outlined in this guide, you can establish a partnership structure that aligns with your goals and positions your business for success.
Should you have any further questions, please do not hesitate to contact us at [email protected].
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.
by Andria PapageorgiouStrengthening Compliance: Safeguarding against Money Laundering Risks
A. Introduction:
In an increasingly interconnected and digital world, the fight against financial crimes, including money laundering, has taken center stage. As illicit activities continue to evolve and become more sophisticated, it is crucial for businesses to prioritize Anti-Money Laundering (AML) compliance. This article sheds light on the importance of AML measures, the risks associated with non-compliance, and how our law firm is dedicated to upholding AML standards while offering consulting services to organizations seeking to strengthen their AML frameworks.
B. The Significance of AML Compliance:
Anti-Money Laundering compliance refers to the comprehensive set of regulations, policies, and procedures designed to prevent the facilitation of money laundering and terrorist financing activities. Money laundering not only undermines the integrity of the global financial system but also aids criminal enterprises in disguising their illicit gains as legitimate funds. By complying with AML regulations, businesses not only protect their reputation but also contribute to maintaining the integrity of the financial system.
C. Risks of Non-Compliance:
The consequences of non-compliance with AML regulations are severe, ranging from reputational damage to financial penalties and legal consequences. Financial institutions and businesses failing to implement adequate AML controls can face substantial fines, regulatory sanctions, and potential loss of licenses (if applicable). Additionally, non-compliance may lead to damaged customer trust and adverse publicity, which can have long-lasting impacts on an organization’s bottom line.
D. Our Commitment to AML Compliance:
At Andria Papageorgiou Law Firm, we recognize the critical importance of AML compliance and the challenges businesses face in meeting regulatory obligations. With a team of experienced legal professionals specializing in AML, we are dedicated to assisting organizations in navigating the complex AML landscape, tailoring our services to their unique needs.
Our law firm offers comprehensive AML consulting services, helping clients establish robust AML frameworks and compliance programs. We collaborate closely with businesses across various sectors, providing guidance on risk assessment, policies and procedures development, staff training, and ongoing monitoring. By leveraging our expertise, organizations can ensure compliance with AML regulations, minimize risks, and safeguard their operations and reputation.
Recognizing that each business has unique AML requirements, our consulting services are tailored to meet specific needs. We work closely with clients to understand their operations, risk profile, and regulatory environment. We then develop customized solutions that address their specific challenges, ensuring an effective and efficient AML compliance program.
We understand that AML regulations are constantly evolving to keep pace with emerging risks. We remain up-to-date with the latest regulatory developments and industry best practices, ensuring our clients stay ahead of the curve. We proactively monitor changes in AML laws, guidelines, and enforcement actions, incorporating relevant updates into our consulting services to help clients maintain their AML compliance posture.
Further to all the above, we are also proud to announce that our esteemed Founder and Lawyer, Mrs. Andria Papageorgiou, has achieved an exceptional milestone in her professional career. Mrs. Papageorgiou has recently completed the prestigious International Compliance Association (ICA) Certification in Anti-Money Laundering (AML) for Institute of Certified Public Accountants of Cyprus and Cyprus Bar Association (CBA) Members, successfully passing the exam with Distinction. This accomplishment highlights her expertise and dedication to upholding the highest standards in AML compliance. The ICA Certification in AML is an internationally recognized qualification offered by the International Compliance Association (ICA). This certification equips professionals with the in-depth knowledge and skills necessary to combat the ever-evolving challenges posed by money laundering and terrorist financing activities.
E. Conclusion:
The fight against money laundering requires a proactive and comprehensive approach to ensure the integrity of the global financial system. By prioritizing AML compliance, businesses can mitigate risks, Andria Papageorgiou Law Firm, we are committed to helping organizations navigate the complex world of AML regulations through our tailored consulting services.
Should you have any further questions, please do not hesitate to contact us at [email protected].
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.
by Andria PapageorgiouRegistration of a Non-Profit Organisation in Cyprus
In Cyprus, there are currently four primary types of non-profit organizations:
- Non-profit Companies: These entities are established with the purpose of serving non-profit objectives. They operate with the intention of benefiting the public or a specific group without pursuing commercial gains.
- Foundations: Foundations are established with the unique characteristic that all their assets are dedicated to a specific cause or purpose. They are typically created to support charitable, educational, scientific, or cultural activities.
- Societies: Societies are formed as unions comprising a minimum of 20 members. Their primary objective is to achieve a specific non-profit goal or purpose. These organizations work towards common interests or causes, fostering collaboration and collective efforts.
- Clubs: Clubs are associations formed by a minimum of 20 members, primarily for entertainment or recreational purposes. These organizations provide a platform for individuals with shared interests to come together, engage in activities, and promote social interactions.
These distinct types of non-profit organizations in Cyprus play crucial roles in various sectors, contributing to the betterment of society, the promotion of social causes, and the cultivation of shared interests.
It is important to note that each type of organization may have specific legal requirements and regulations governing its establishment, operation, and governance.
1. Non-Profit Companies:
Non-profit companies in Cyprus, governed by the Companies Law (Cap. 113), differ from for-profit companies in terms of their main characteristics:
- Dividend Distribution: Non-profit companies are prohibited from distributing dividends to their members or shareholders. Instead, any surplus generated is to be reinvested into furthering the organization’s non-profit objectives.
- Objectives: These companies can be registered to promote specific causes such as art, science, charity, or any other similar non-profit objective. The primary focus is on advancing public welfare or specific societal needs rather than generating profits for the shareholders.
- Regulatory Requirements: Non-profit companies are subject to the same legal requirements as for-profit companies, including the maintenance of audited accounts, adherence to annual levy obligations, and compliance with dissolution procedures such as strike-off or liquidation.
- Registration Authority: The Registrar of Companies is the competent authority responsible for the registration and oversight of non-profit companies in Cyprus.
2. Foundations:
Foundations in Cyprus are governed by the Societies and Foundations Laws of 1972 and 1997.
The main characteristics and requirements of foundations can be summarized as follows:
- Legal Definition and Purpose: Foundations are established with the principle that the entirety of their assets must be dedicated to a specific purpose or cause. This ensures that the resources are utilized for the intended objectives, such as charitable, educational, scientific, or cultural endeavors.
- Membership and Funding: Foundations can be established by a single individual (one member) and there is no specific minimum amount of funds required for their formation.
- Registration Authority: The Ministry of Interior is the competent authority responsible for the registration and oversight of foundations in Cyprus. To initiate the registration process, certain documents must be submitted, including the founding act, details of administration members, foundation name and address, foundation emblem (if applicable), and a lawyer’s letter.
- Dissolution or Liquidation: Foundations may undergo dissolution or liquidation under certain circumstances. In such cases, the remaining funds of the foundation are transferred to the authorities of the Republic of Cyprus, who are responsible for utilizing these funds for the cause originally supported by the dissolved or liquidated foundation.
3. Societies (or Associations):
Societies also referred to as associations, are governed by the Societies and Foundations Laws of 1972 and 1997 in Cyprus. Here are the key points and requirements related to societies:
- Definition and Purpose: According to the law, a society is defined as an organized union of at least twenty (20) individuals who come together to achieve a specific non-profit objective. These objectives can range from charitable, educational, cultural, or other similar non-profit endeavors.
- Registration Authority: The Ministry of Interior is the competent authority responsible for the registration and oversight of societies in Cyprus. It is through this authority that the registration process should be initiated.
- Registration Requirements: To register a society, the following documents and information are typically required: a memorandum of association, names and addresses of the administration members, articles of association signed by the members, the society’s emblem (if applicable), and a description of any movable and/or immovable property held by the society at the time of application.
- Publication: The certificate of registration, in the prescribed form, is published in the official Gazette of the Republic of Cyprus to formalize the society’s legal status.
- Dissolution: A society can be dissolved either by a resolution passed by the assembly of its members or if the number of members falls below twenty. Alternatively, a court order can also initiate the dissolution process.
4. Clubs:
Clubs in Cyprus are regulated by the Club Registration Law of 1972 (Cap. 112). The key characteristics and requirements of clubs can be summarized as follows:
- Definition and Purpose: A club is defined as the association of at least twenty individuals who come together for social activities, mutual entertainment, or any other lawful non-profit purpose. The primary focus of clubs is to foster social interactions and provide a platform for shared interests and recreational pursuits.
- Minimum Number of Members: A club must have a minimum of twenty members to be considered valid.
- Registration Authority: The registration of clubs is overseen by the local district office where the club premises are located. Prior to commencing operations, the club must submit an application to the local district office.
- Application Requirements: The application must include essential information such as the name and purpose of the club, the club’s address, the names of the secretary and all members, the total number of members, and the club’s memorandum.
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Disclaimer: Please note that the information provided above is intended as an overview of the four types of non-profit organizations and should not be regarded as legal advice. To ensure proper understanding and compliance with the specific requirements for registering a non-profit company, society, foundation, or club, it is strongly recommended to seek professional legal advice. 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.