Cyprus Aligns with EU Regulations by Adopting Strong AML/CFT Measures

Cyprus has established a new digital registry and requires the businesses to identify their true owners on the new registry. This move has put the Mediterranean country in line with the anti-money laundering and counter-terrorism financing regulations by the European Union. This has been reported by the country’s Commerce and Energy minister, Natasa Pilides.

According to the minister, the new registry went online last month and it has opened up transparency in the industry that hides behind the fake fronts to launder the gains of the illicit activities. 

“Recording the correct and updated information regarding the true beneficiary is instrumental in tracking down criminals who would otherwise conceal their identity behind a company structure,” said Pilides.

Cyprus has been struggling in getting rid of its shady repute as the haven for money laundering. This repute has gravely impacted the country’s fragile economy and discouraged foreign investors to invest in the country. The country is now taking strong measures to ward off the notorious reputation by identifying the fake business fronts that have been taking advantage of the country by paying low corporate taxes. 

All companies and business organisations registered before the 16th of March will now have to sign up at the Ariadni, the Cypriot government portal, within 12 months. By registering at the government portal, the companies will have to identify their true ownership including anyone holding more than 25 per cent of the shares, anyone with majority voting rights, and anyone who has the ability the exercise effective control of the company. 

The companies that register after 16th March will be provided only 30 days to register with the portal and provide all the necessary information. If no one comes forward to claim the ownership of the company, then the senior-most employee will be declared the owner of the company. 

The information regarding the company’s ownership will only be accessed by the Cyprus police and the investigators of financial crimes for the next year. The public will be unable to access the information up until 2022.

These measures are in line with the European Union’s AML/CFT measures that require the transparency of the beneficial ownership of the business entities. European Union is aiming to put the list of company’s ownership registration of all the member states in a single centralised database.