Thousands of companies face hefty fines
Out of approximately 230,000 registered companies in Cyprus, only 140,000 have updated their records regarding their ultimate beneficial owners (UBOs) as required. Companies that do not comply with this requirement by the extended deadline of March 31, 2023, could face fines starting at €200 on January 1, 2024, and accumulating at a rate of €100 per day of non-compliance, potentially reaching up to €20,000. Many companies have found it difficult to update their UBO information due to various reasons, including the inability to contact UBOs who are in Ukraine or Russia. Additionally, around 70,000 of the 90,000 entities that have not updated their UBO records have filed for deletion from the registry, but tax authorities and banks have not consented to many of these deletions. There has been criticism of the Registrar of Companies for not implementing electronic signatures, which has contributed to inefficiencies. Concerns have been raised about the potential impact of the fines on family businesses, especially given the short time frame until the deadline.