Understanding Beneficial Owners

The concept of Beneficial Owners (UBOs – Ultimate Beneficial Owners) was not part of the original Companies Law, Cap. 113, but has been introduced through amendments implementing EU directives on anti-money laundering (AML), particularly the 4th and 5th AML Directives.

Here are the key points under current Cypriot law as integrated into Cap. 113 framework:

Definition of Beneficial Owner

A Beneficial Owner is any natural person who ultimately owns or controls a company.

Usually, this means holding more than 25% of shares, voting rights, or ownership interest directly or indirectly.

Register of Beneficial Owners

Cyprus maintains a central register of beneficial owners, introduced by amendments to Cap. 113 and administered by the Registrar of Companies.

All companies and other legal entities must collect and submit UBO information.

Obligations of Companies

Companies must:

• Identify their beneficial owners
• Maintain accurate and up-to-date information at their registered office
• Submit this information to the central register via the Registrar of Companies' electronic system

Details Required

• Full name, date of birth, nationality, residential address
• Nature and extent of beneficial interest (e.g., percentage of shares or control)

Access to Information

• Authorities (Police, Tax, MOKAS, etc.) have unrestricted access
• Public access is currently restricted (subject to legitimate interest requests)

Penalties for Non-Compliance

Failure to comply can result in administrative fines and potential criminal liability for company officers.