UBO Fines to Be Cancelled in Cyprus: Key Updates from Parliament and Government Agreement

Introduction

In a landmark decision, the Cypriot government and Parliament have agreed to cancel hefty fines previously imposed for late submissions of Ultimate Beneficial Owner (UBO) information. This resolution comes as a relief to businesses struggling to meet compliance deadlines and reflects a collaborative effort to streamline corporate obligations. Tashev Law is here to guide you through the implications of this decision and help your business navigate UBO compliance efficiently.

Why Were UBO Fines Introduced?

The UBO Register aims to enhance corporate transparency by identifying individuals with significant control over businesses. However, initial fines of up to €20,000 per entity were deemed excessive, sparking widespread criticism from the business community.

What Has Changed?

The agreement between the government and Parliament proposes:

1. Annulling Past Fines: Businesses that fail to meet previous deadlines will no longer face penalties.
2. Reduced Future Fines: Non-compliance fines will be capped at €5,000.
3. Revised Legislation: A new framework will align with the realities businesses face while maintaining regulatory standards.

What Does This Mean for Businesses?

• Past fines are voided, offering immediate financial relief.
• Businesses must still comply with UBO reporting requirements, as transparency remains a priority.
• Future penalties are reduced but will be enforced for non-compliance moving forward.

Why Is This Decision Important?

The initial fines posed a financial strain, particularly on SMEs, threatening their sustainability. With this change, businesses can focus on fulfilling UBO obligations without the fear of crippling penalties. The move demonstrates Cyprus's commitment to fostering a business-friendly environment while maintaining international compliance standards.

How Tashev Law Can Help

Tashev Law specializes in corporate compliance, ensuring businesses meet UBO reporting obligations. Our services include:

• Assistance in submitting UBO data to the Register of Beneficial Owners and the Cyprus Trusts Beneficial Owners Registry.
• Tailored advice on navigating compliance challenges.
• Representation and advocacy for businesses facing regulatory issues.

Contact Tashev Law today for expert guidance:
📞 Phone: +357 25 567778
📧 Email: office@tashevlaw.com

FAQs About UBO Reporting in Cyprus

What is UBO Reporting?

UBO Reporting involves disclosing the identities of individuals with significant control over a company to the Registrar of Companies.

What Happens if I Miss Future Deadlines?

Under the revised legislation, businesses face reduced fines of up to €5,000 for non-compliance. Timely submissions remain crucial.

Can Tashev Law Help My Business?

Yes! Tashev Law provides comprehensive UBO compliance services, ensuring your business avoids penalties while meeting regulatory requirements.