Cyprus Introduces Financial Charges for Non-Compliance with Beneficial Ownership Register
===========================================================
The Department of the Registrar of Companies and Intellectual Property in Cyprus has recently announced a new requirement for new officers or partners appointed to a company or partnership. This move aims to ensure compliance with the beneficial ownership register regulations.
Compliance with Beneficial Ownership Register Regulations
According to the announcement, new officers or partners must investigate whether the entity has declared its beneficial owners before accepting their appointment. If a financial charge is imposed on them for non-compliance with the obligations under the beneficial ownership register prior to their appointment, they have the right to submit a written objection to the Department.
Responsibility Lies with the Company or Partnership
The obligation to investigate and declare beneficial owners lies with the company or partnership itself, not the individual officers or partners. This emphasizes the importance of maintaining accurate and up-to-date records on beneficial ownership in Cyprus.
Consequences of Non-Compliance
Failure to comply with these regulations can result in financial penalties and reputational damage. It is crucial for companies and partnerships to ensure that their beneficial ownership information is accurate and compliant with regulatory requirements.
Prioritizing Compliance
In a related development, KPMG’s July 2024 report highlights the need for businesses to prioritize compliance with beneficial ownership register regulations. The report provides valuable insights into the implications of non-compliance and offers practical advice on how to navigate these complex regulations.
Disclaimer
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. While every effort has been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on this information without appropriate professional advice after a thorough examination of the particular situation.
Key Points
- New officers or partners must investigate beneficial ownership before accepting their appointment
- Financial charges may be imposed for non-compliance with beneficial ownership register regulations
- Responsibility lies with the company or partnership, not individual officers or partners
- Failure to comply can result in financial penalties and reputational damage
- Prioritizing compliance is crucial for businesses operating in Cyprus