The Prevention and Suppression of Money Laundering and Terrorist Financing Law 13(1)/2018 (the “AML Law”) governs the establishment of the Ultimate Beneficial Owners Register (the “UBO Register”) and the obligations of Cyprus companies and other legal entities (the “Obliged Entities”) regarding the submission of information regarding the ultimate beneficial owners to the UBO Register.
Definition of an Ultimate Beneficial Owner
In accordance with the AML Law, an ultimate beneficial owner is any natural person(s) who ultimately owns or controls the Obliged Entity and/or the natural person(s) on whose behalf a transaction or activity is being conducted and includes at least:
(a) in the case of corporate entities: the natural person(s) who ultimately owns or controls a legal entity through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that entity, including through bearer shareholdings, or through control via other means. A shareholding of 25% plus one share or an ownership interest of more than 25% in the customer held by a natural person shall be an indication of direct ownership.
(b) in the case of trusts: the settlor; the trustee(s); the protector, if any; the beneficiaries, or where the individuals benefiting from the legal arrangement or entity have yet to be determined, the class of persons in whose main interest the legal arrangement or entity is set up or operates and any other natural person exercising ultimate control over the trust by means of direct or indirect ownership or by other means;
(c) in the case of legal entities such as foundations, and legal arrangements similar to trusts, the natural person(s) holding equivalent or similar positions to those referred to in point (b).