Businesses seek relaxation of UBO rules amid fines

Businesses which for one reason or another were unable to update their records regarding their ultimate beneficial owners (UBOs) have asked authorities to relax the rules temporarily so that they can comply.

By the end of last year some 200,000 registered corporations were required to update their UBO records, in line with EU legislation. However, thousands of companies have yet to do so.

Under a directive issued in December by the Registrar of Companies, all corporate entities should have filed their updated UBO data by December 31, 2023. Companies not complying would be fined €200 on January 1, 2024, and €100 per every continuing day of non-compliance.

In a letter addressed this week to Irini Mylona Chrysostomou, the Registrar of Companies, a group of business associations complained that thousands of corporations have already been saddled with hefty fines, in many cases through no fault of their own.

The joint letter is signed by the Institute of Certified Public Accountants, the Bar Association, the Chamber of Commerce and Industry, Step Cyprus, the Cyprus Fiduciary Association and the Cyprus International Businesses Association.

They said many entities could not make the UBO filings in time because the website of the Registrar was at times inaccessible.

The businesses are asking for a meeting with the Registrar to discuss the matter. In the meantime, the Registrar website does not allow a company to make a UBO filing unless it first pays the fine it owes. The associations ask the Registrar to make the necessary technical changes to the website so that submissions are allowed without paying the fine.

“This will greatly help in updating the archives, allowing our country to remain compliant with the relevant European directive, and without unnecessarily penalising those companies and legal entities that wish to comply,” read the letter.

The same matter has reportedly been tabled for discussion in parliament next Tuesday. Those invited include the minister of energy and commerce, the Tax Commissioner, representatives of the attorney-general’s office, and members of business associations.