CyTBOR – A new reality?

Dr. Marina Himoni

The Cyprus Securities and Exchange Commission (CySEC) has announced on 13 May 2022 that the online platform for the Cyprus Beneficial Ownership Register of Express Trusts and Similar Legal Arrangements (“CyTBOR”) will be accessible to trustees as of 17/05/2022 and for all involved parties as of 17/06/2022.

The creation and establishment of CyTBOR emerged in more particular from Article 61C(4)(a) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (“AML/CFT Law”), in full accordance with the 4^th and 5^th European Directives on the Prevention and Suppression of Money Laundering and Terrorist Financing.

CyTBOR will provide easy and immediate access to updated information and data regarding the Beneficial Owners of Express Trusts and Similar Legal Arrangements. The platform will provide access to information such as the identity of the settlor, trustee, protector (if appointed), beneficiary as well as any other natural person exercising final control over the trust through direct or indirect ownership, or by other means.

The importance of the creation of CyTBOR lies in the fact that it will also provide access to all supervisory State authorities, such as the Customs Department, the Taxation Department, MOKAS and the Police which in this way have unhindered access to the Register within the framework of their responsibilities.

According to Section 61C(5)(b)(i) and Section 61C(5)(b)(ii) of the AML/CFT Law, Trustees of express trusts or persons holding an equivalent position in a similar legal arrangement, shall provide the below information, as set out in paragraphs 5(3), (4), (5) and (6) of the CySEC Directive known as Regulatory Administrative Act 257/2021:

name,
country and date of incorporation and/or establishment,
applicable law,
termination date (if any),
with regard to a similar legal arrangement, the type of such arrangement,
information on the country of establishment or residence of the trustee or other equivalent person as well as their residential address,
where a trustee or other equivalent person is established or resides outside the European Union and establishes a business relationship in the name of the Express Trust or similar legal arrangement in the Republic, the date of commencement of the business relationship, the name of the person with whom the business relationship is established together with the letter of agreement which governs the business relationship,
where a trustee or other equivalent person is established or resides outside the European Union and acquires immovable property in the name of the Express Trust or similar legal arrangement in the Republic, the registration number and address of the immovable property together with title deeds of the immovable property,
any other information and/or supporting documents which are deemed necessary by the Commission for identification purposes.

The information provided to the Commission for registration in the Register on the beneficial owners of an Express Trust or similar legal arrangement, in the case of the persons set out in paragraphs (b) and (c) in the definition of «beneficial owner» in section (1) of Article 2 of the Law, shall include the following:

full name,
father’s name,
date of birth,
place of birth,
nationality or nationalities,
residential address,
number, type and country of issuance of identification document,
year of death, where applicable,
date on which the natural person became a beneficial owner,
the nature and extent of the rights, which are directly or indirectly held by each beneficial owner,
his/her role in the Express Trust or similar legal arrangement,
any other information and/or supporting documents which are deemed necessary by the Commission for identification purposes of the beneficial owner as arises from paragraphs (b) and (c) in the definition of «beneficial owner» in section (1) of Article 2 of the Law.

As per the provisions of the Directive, a Trustee in an Express Trust or Other equivalent person established or residing in the Republic shall, within fifteen (15) days from appointment, submit to the CyTBOR, an application for registration in the Register providing the above-mentioned information.

For further information on this topic please contact Dr. Marina Himoni at P. N. KOURTELLOS & ASSOCIATES LLC, by telephone: +357 25 745575 or by fax: +357 25 755525 or by e-mail: mh@kourtelaw.com

Disclaimer

This publication has been prepared only as a general guide and for information purposes. It does not constitute or should not be read as a legal advice. One must not rely on it without receiving independent advice based on the particular facts of his/her own case. No responsibility can be accepted by the authors or the publishers for any loss occasioned by acting or refraining from acting on the basis of this publication.