The Department of the Registrar of Companies and Intellectual Property has announced significant amendments to the Prevention and Combating of Money Laundering Activities (Amendment) Law [L.141(I)/2024]. Key Highlights of the Amendment:
1. Restructured Financial Penalties:
- Financial penalties will now be imposed only on the company or other legal entity that fails to meet beneficial ownership reporting obligations.
- Directors and secretaries are no longer individually fined. However, directors or managing directors can still be jointly and severally liable for the company’s unpaid penalties.
2. New Penalty Framework:
- €100 for the first day of non-compliance.
- €50 for each additional day of delay.
- The total penalty is capped at €5,000 per company.
3. Extended Deadlines for Compliance:
- The deadline for submitting Beneficial Ownership data has been extended to January 31, 2025.
- The deadline to confirm 2024 data has been extended to March 31, 2025.
4. Refund of Penalties Imposed from April 2024:
- Monetary charges imposed from April 1, 2024 to date, will be revoked, and amounts already paid will be refunded.
5. Enforcement Measures:
- From February 1, 2025, non-compliance will result in administrative sanctions, including potential removal from the business register and court orders to enforce compliance.
Balancing Compliance and Business Realities:
The amendments reflect a more pragmatic and practical approach to balancing regulatory compliance with the operational realities of companies in Cyprus, particularly SMEs. The extended deadlines provide businesses ample time to fulfil their obligations while avoiding unnecessary penalties.
Next Steps for Companies:
Businesses are strongly advised to:
- Update and submit their beneficial ownership data before the January 31, 2025, deadline.
- Confirming the UBO Registry data of 2024 by March 31, 2025.
With enforcement starting in February 2025, companies should act promptly to remain compliant and avoid penalties.
