Cyprus government committed to bolstering services sector, Finance Minister says

Finance Minister Makis Keravnos this week reiterated the government’s commitment to bolstering the administrative services sector in Cyprus.

The minister’s comments were delivered during his address at the 11th Annual General Assembly of the Cyprus Fiduciary Association (CYFA), the representative body of regulated Administrative Service Providers in Cyprus.

The event also featured speeches by Deputy Minister for Research, Innovation, and Digital Policy, Philippos Hadjizacharias, CYFA president Christophoros Koutouroussis, George Theoharides, president of the Cyprus Securities and Exchange Commission (CySEC), and Irene Mylona-Chrysostomou, Registrar of Companies and Intellectual Property.

Minister Keravnos commended CYFA for its dedication to fostering sustainable international activities within the Cypriot economy while maintaining the highest professional standards and business integrity, which he emphasised as an invaluable asset for society.

“The journey of CYFA since its establishment in 2011 reflects the collective vision and commitment of its members, making it one of the most respected and recognisable organisations in the country,” he noted.

In an ever-evolving business environment, the Finance Minister acknowledged the rapid growth of Administrative Services Providers (ASPs) who offer services to legal entities in Cyprus and beyond. These services encompass a wide range of functions, including administrative, company secretary tasks, and various support services.

“Administrative Service Providers have become indispensable partners, simplifying compliance with regulations, reducing administrative burdens, and enabling businesses to focus on the ever-evolving demands of the global business world,” he stated.

The Cypriot Finance Minister also stressed the importance of reliable administrative services for companies and other organisations in the context of an international business hub.

“I am particularly pleased that CYFA has the necessary infrastructure, expertise, and capability to provide training and guidance to its members and ensure their continuous presence in the global business arena while upholding the collective prosperity of this significant sector,” he explained.

Keravnos also highlighted the government’s unwavering commitment to improving all aspects of the sector, including enhancing the quality of service providers and establishing a robust regulatory framework.

He highlighted the government’s recent decision to conduct a comprehensive study aimed at strengthening governance and oversight of Administrative Service Providers.

Deputy Minister for Research, Innovation, and Digital Policy, Philippos Hadjizacharias, emphasised the role played by CYFA in supporting the vital investment sector in Cyprus.

He praised CYFA for bringing together businesses and individuals involved in investments, enabling them to advocate for their interests with various government bodies and secure their rights.

Moreover, he stressed the importance of efficient services for individuals interested in investing in Cyprus, as it contributes to overall development, reputation, and the attraction of new investors.

“We have the advantage of a strategically favourable position on the global map, offering favourable tax incentives compared to other European countries, favourable climate conditions, and a welcoming population ready to embrace and welcome any new developments for the country,” he stated.

Meanwhile, in his address, CYFA president Koutouroussis underscored the need for a more dynamic and robust administrative services industry in Cyprus, built on trust and the country’s reputation.

He emphasised the importance of balancing compliance with business growth and recognised that excessive regulation could hinder business development.

Koutouroussis noted that CYFA members should try to have a balanced approach and focus on attracting clients aligned with long-term goals and values, even if it means sacrificing short-term profitability.

He also stressed that Cyprus’s small size could be turned into an advantage, promoting a flexible and adaptive system to navigate the complex global landscape.

Furthermore, Koutourousis addressed key factors for achieving these objectives, including tax reforms and digitalisation. He also urged the need to attract larger clients and international banks, rejecting the mentality of small scale and leveraging Cyprus’s unique advantages in the financial sector.

In his speech, George Theocharides, President of the Cyprus Securities and Exchange Commission (CySEC), discussed various aspects related to sanctions, both at the EU and US levels, emphasising the importance of aligning with the Anti-Money Laundering Directive.

He noted that CySEC actively provides guidance and support to the supervised entities, offering extensive information on its website, covering legal frameworks, sanctions guidance, and application requirements.

He also mentioned that CySEC is currently supervising 135 Administrative Services Providers for Anti-Money Laundering compliance, with an additional 10 applications under review.