Further to the introduction of a register for Ultimate Beneficial Owners (UBOs) for companies, as covered in a series of newsfeeds, on 18 June 2021 Cyprus has introduced also a similar register for UBOs of Trusts (the “Trust Register”).
This was implemented through a Directive issued by the Cyprus Securities and Exchanges Commission (CySEC), which is the supervisory authority for the implementation and operation of the Trust Register. The Directive is termed as “Directive for the prevention and suppression of money laundering and terrorist financing (register of beneficial owners of express trusts and similar legal arrangements)”.
Express trusts are defined as those trusts created expressly by a settlor at their own will. Trusts arising by operation of law as well as trusts for which the settlor shows no clear intention for their creation are not considered as express trusts.
As with the equivalent register for companies, the Trust Register will be kept electronically. Registration should take place in the following cases:
Information to be submitted
The following information must be submitted for the registration:
UBO/s (trustee, settlor, protector, beneficiaries)
In case the Trust has one or more classes of beneficiaries, the following information should also be provided:
Deadline and Charges
A six-month period has been granted for existing trusts to be registered.
For new and existing trusts falling under either of the two cases for obliged entities, as well as for any changes in the information submitted to the Trust Register, for trusts already registered, there is a time limit of 15 days within which such changes should be communicated to CySEC.
CySEC has set a scale of charges for registration and renewal of registration of trusts as well as for retrieval of information.
Call for Action
Seamark will be contacting clients for which it provides trustee services and other clients who will need to comply with the provisions of the Directive in order to obtain necessary information not already in our possession.
Further information will be reported once the electronic platform though which the Trust Register will be operated is released by CySEC.