Cyprus Implements UBO Register for Trusts

30/06/2021

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.

Obliged Entities

As with the equivalent register for companies, the Trust Register will be kept electronically. Registration should take place in the following cases:

1. the trustee is located or residing in the Republic of Cyprus; or
2. the trustee, which is located or residing outside EU, establishes a business relationship or acquires immovable property in Cyprus on behalf of the express trust.

Information to be submitted

The following information must be submitted for the registration:

Trusts

• Name of the trust
• Country and date of creation and/or establishment
• Applicable law
• Termination date (if applicable)
• Country in which the trustee is established or resides and details of its address
• In case the trustee resides outside the EU and establishes a business relationship on behalf of the trust in Cyprus, the date of commencement of the business relationship, the name of the person with whom such relationship is established together with the document which governs the relationship
• In case the trustee resides outside the EU and acquires immovable property on behalf of the express trust in Cyprus, the registration number and address of the immovable property together with the title deed of the property
• Any other information and/or supporting documentation requested by CySEC for identification purposes

UBO/s (trustee, settlor, protector, beneficiaries)

• Name, surname and father’s name
• Date and place of birth
• Nationality/ies
• Residential Address
• Type, number and country of issuance of identification document
• Date of death (where applicable)
• Date on which the particular person became beneficial owner
• The nature and extent of the rights which are directly or indirectly held by the UBO
• The role of the UBO in the trust
• Any other information and/or supporting documentation requested by CySEC for identification purposes

In case the Trust has one or more classes of beneficiaries, the following information should also be provided:

• Description of the class and its members
• Explanation of the nature and extent of the rights of the class

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.