On 18th June 2021, the Cyprus Securities and Exchange Commission (the “CySEC”), pursuant to Article 61E of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2021 (the “AML Law”), has issued the CySEC Directive 269/2021 (the “Directive”) which provides information and guidance in relation to the registration of express trusts and similar legal arrangements in the Beneficial Ownership Register (the “Trust Register”).
Express Trusts
An “express trust” is defined as the trust arrangement which is created explicitly and voluntarily by the settlor and does not include any trust arising by operation of law or any trust or decision for which the settlor has no explicit intention to create.
Ultimate Beneficial Owner
An “ultimate beneficial owner” of an express trust, means any natural person who ultimately owns or controls of the trust through direct or indirect ownership or by other means:
• the settlor;
• the trustee or commissioner;
• the protector, if any;
• the beneficiary, or where the individual benefiting from the legal arrangement or legal entity have yet to be determined, the class of persons in whose main interest the legal arrangement or entity is set up or operates;
• any other natural person exercising ultimate control over the trust by means of direct or indirect ownership or by other means; and
• the trustee of an express trust or any other person holding equivalent or similar position who resides in the Republic of Cyprus.