In early spring 2021, Cyprus embraced and included the 5th Anti-Money Laundering EU Directive 2018/843 in its domestic legislation. In order to implement the aforementioned EU Directive, there were a few changes and amendments made with regards to the Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007. Cyprus was committed to the idea of creating a register of ultimate beneficial owners of the Cyprus companies, which is also referred to as the UBO Register. It will be administered and managed by the Registrar of Companies. Similarly, the Cyprus Securities and Exchange Commission (the "CySEC") will administer the register of beneficial owners of express trusts and similar legal arrangements, which is also referred to as the Trust Register.

In addition to the above-mentioned events, "for the prevention and suppression of money laundering and terrorist financing in regards to the register of beneficial owners of express trusts and similar legal arrangements," CySEC published its regulations/directives on the 18th of June 2021. The CySEC directives were published with immediate effect. It also proved to be helpful with regards to providing the guidance and details for the purpose of registration in the Trust Register for express trusts and similar legal arrangements.

“Express trusts” is a term that only includes those trusts which a settlor has voluntarily and explicitly set. It does not refer to any trusts through the operation of law nor those trusts that the settlor had unclear intentions for the establishment.

The CySEC is responsible for maintaining The Trust Register. It has to be maintained electronically, and in case of an express trust or similar legal arrangement is needed to be formally registered under two conditions. These conditions are mentioned below:

1. Its trustee is located in the Republic of Cyprus.
2. Its trustee, if located outside the EU, has to have a business relationship or has to purchase immovable property in the Republic of Cyprus in the interest of the express trust.

Following is the information which is required to be submitted for the purpose of registration of:

1. The express trusts or similar legal arrangements -

1. Trust's Name;
2. Name of Country and date of establishment;
3. Law which is applicable;
4. Date of termination (only if applicable);
5. Trustee's country of residence and the residential address;
6. In a situation where the trustee is situated in a territory outside of the EU and has developed a business relationship in the Republic of Cyprus, he/she needs to provide; business relationship date, name of the individual with whom the business relationship has been developed, and a regulating document of this business relationship;
7. If the country of residence of trustee is not within the EU and he/she purchases an immovable property in the Republic of Cyprus in the interest of the express trust, the title and registration number of such property is to be included;
8. The kind of arrangement in a scenario of identical legal arrangements; and
9. Other essential details and information are required by CySEC for the purpose of identification.

1. The Ultimate Beneficial Owners of the Trust (Trustee, Settlor, Protector, Beneficiaries any other physical person exercising final control of the trust through direct or indirect ownership or by other means) -

1. Name along with surname;
2. Father's Name;
3. Date of birth along with the place;
4. Nationality or nationalities;
5. Address of residency;
6. Number, type, and country where you have been issued the documents regarding the identification;
7. Date of death (only if applicable);
8. The date on which the UBO became the beneficial owner;
9. The nature and extent of beneficial owner's rights, which are either indirectly or directly held;
10. The beneficial owner's role in the trust or other legal arrangement which are similar in nature;
11. In case there are a class of beneficiaries in the trust, the CySEC would need the classes' description and the members of each class along with the nature and extent of the rights the beneficiaries of each class possess; and
12. Other essential details and information are required by CySEC for the purpose of identification.

First submissions

A time period of six months has been allowed to submit the aforementioned details and documents in the Trust Register.

Access

According to the CySEC, the trust Register can be accessed by the following:

1. The Cyprus Police, the Cyprus Tax Department, and the Cyprus Customs Department without any restrictions;
2. Any person that is liable within the frame of identification measures and due diligence for their client;
3. Any legal personality that is able to prove it as a legitimate interest. This is going to be subjected to CySEK's acceptance;
4. Anyone that owns a controlling interest in a company or a legal entity. Ownership can be both direct or indirect ownership. This is going to be subjected to the CySEK’s and Exchange Commission’s acceptance.

If access is allowed, any legal person will gain access to the name, date of birth, country of residence, and the actual nationality of the people participating in that trust, along with the extent and nature of the rights they possess in the trust.

 For more information please contact us at info@savvacyprus.com. We will be happy to assist you.