Following the enactment, in 18 February 2021, of the Prevention and Suppression of Money Laundering Activities (Amending) Law of 2021, amending the Prevention and Suppression of Money Laundering Activities Law of 2007 (188(I)/2007) (the “Law”) (which introduced the maintenance and operation of beneficial ownership registers for companies and other legal entities, trusts and other legal arrangements, clubs, foundations, federations and unions) the Cyprus Securities and Exchanges Commission (the “CySEC”), being the competent authority for maintaining and operating the Register of beneficial owners of express trusts and similar legal arrangements (the “Register”), announced on 18 June 2021 the issuance of its Directive (Regulatory Administrative Act 257/2021) for this purpose (the “Directive”).
 
The Directive provides information and guidance regarding the registration of express trusts and similar legal arrangements in the Register and the submission of beneficial owner’s information.
 
Furthermore, the Register will be kept on an online portal by CySEC and the registration of express trusts and similar legal arrangements, the submission, maintenance and update of information of beneficial owners (“BOs”) and the access to the Register will take place through the aforementioned online portal.
 
Information to be submitted for the registration in the Register:

1. For express trusts or other similar legal arrangements:  

1. Name,

 

2. Country and date of creation and/or establishment,

 

3. Governing law,

 

4. Date of termination (if any),

 

5. In case of similar legal arrangements, the type of the legal arrangement,

 

6. Information on the residency of the trustee (or other equivalent person) and residential address,

 

7. In the case where a trustee (or other equivalent person) is established or resides outside the European Union and enters into a business relationship on behalf of an express trust or other similar legal arrangement in Cyprus, the date of commencement of the business relationship, the name of the person with which the business relationship has been established, and the agreement governing the business relationship,

 

8. In the case where a trustee (or other equivalent person) is established or resides outside the European Union and acquires real estate on behalf and in the name of an express trust  or other similar arrangement in Cyprus, the registration number and address of the property as well as the title deed of the property, and

 

1. Any other information and/or supporting documents deemed necessary by CySEC for identification purposes.

 
2. For the BOs of trusts or similar legal arrangements:

1. Natural Persons:

1. Name and surname,
2. Father’s name,
3. Date and place of birth,
4. Nationality/-ies,
5. Residential address,
6. Number, type and country of issuance of identification document,
7. Date of death (where applicable),
8. Date on which the natural person became a BO,
9. Nature and extent of the rights directly or indirectly held by each BO,
10. Role of the BO in the trust or similar legal arrangement,
11. Any other information and/or supporting documents deemed necessary by CySEC for the purpose of identifying beneficiaries depending on the category of beneficial ownership as defined in the relevant sections of the Law, and
12. In case that the beneficiaries of a trust or similar legal arrangements, have not yet been identified, CySEC requests a description of classes of beneficiaries and the members of each class and also the nature and extent of the rights each class of beneficiaries has.

 

2. Legal persons:

1. Name,
2. Type,
3. Registration number,
4. Country and date of creation,
5. Registered address,
6. Role in the trust or similar legal arrangement (i.e. settlor, trustee, protector, beneficiaries and any other natural person who has the control and manages the trust through direct or indirect ownership or through control via other means),
7. Information for the natural persons which are considered as the BOs of the legal person (see Section (2)(a)(i) – (xii) above),
8. Any other information and/ or supporting documents deemed necessary by CySEC for identification purposes.

 
Pursuant to the Law, the BO of a trust are the settlor, the trustee, the protector, the beneficiaries or the class of beneficiaries in case that the beneficiaries have not been identified and any other natural person who has the control and manages the trust through direct or indirect ownership or through control via other means. For legal arrangements similar to trusts the persons, who are consider as BOs, are the natural persons who have similar or corresponding positions as the BOs of a trust. 
 
Registration Process
 
A trustee of an express trust or other equivalent person in a similar legal arrangement who resides in Cyprus needs to file an application with CySEC:

1. Within 15 days from their appointment as trustee, in case of a newly established express trust or other similar legal arrangement;  

2. Within a period of 6 months beginning from the date of publication of the Directive (i.e. by 17.12.2021), in case of an existing express trust.   

Subject to certain exceptions, the Register will be accessible to:

1. The relevant Regulator, as this is defined in the Law (i.e. the Central Bank of Cyprus, the CySEC etc.), the Police, the Tax Department and the Customs Department;  

2. Authorised representatives who are the trustees or other equivalent person and any persons whom access may be granted according to the provisions of the Law;    

3. Any natural or legal person who has an obligation according to the Law for the purposes of conducting their own due diligence (i.e. financial institutions, banks);  

4. Natural and legal persons who prove that they have a legitimate interest accessing the register. These persons will need to file an application via the online portal with duly evidenced as to why information is requested; and  

5. Any natural or legal person that files a written request in relation to a trust or similar legal arrangement which holds or owns a controlling interest in any corporate or other legal entity other than those referred to in Article 61A(1) and 61B(1) of the Law or established in an EU member state other than Cyprus, through direct or indirect ownership, including through bearer shareholdings, or through control via other means.
 
It is expected that CySEC will issue a guidance for the operation of the online portal developed for this purpose.