The Directive on the Prevention and suppression of money laundering and terrorist financing provides information and instructions regarding the entry of Explicit Trusts in the Register of the Real Beneficiaries of CySEC. The Directive and Regulations are applicable as from the date of publication in the Official Government Gazette, being the 18th June 2021.e’s a stunning layout for everyone.
Register of Explicit Trusts
It is necessary for the persons who administer and manage Cyprus International Trusts and who are appointed as trustees to proceed with all necessary actions for the submission of the required information as per the 5th AMLD with the Registry.
Information disclosed for entry in the Register relating to the Trust shall include the following information: (a) name, (b) country and date of incorporation and / or establishment, (c) applicable law, (d) expiry date (if any), (e) in relation to a similar legal arrangement, the type of such arrangement, (f) information concerning the country of establishment or residence of the trustee or other equivalent person, as well as his/her place of residence; name of the Explicit Trust or similar legal settlement in the Republic. Also the date of commencement of the business relationship, the name of the person with whom the business relationship is entered into as well as the agreement document governing the business relationship, (h) in the event that a trustee or other equivalent is established or resides outside the European Union and acquires real estate on behalf of the Explicit Trust or similar legal settlement in the Republic, the registration number and address of the real estate as well as the title deed of the real estate, (i) any other information and/or supporting documents deemed necessary by CySEC for identification purposes.
Registration of Beneficiaries of the Trust
The information which is communicated to CySEC for registration in the Register of the actual beneficiaries of Explicit Trusts shall include the following: (a) name and surname, (b) father’s name, (c) date of birth, (d) place of birth, (e) nationality or nationalities, (f) address of residence, (g) the number, type and country of issuance of the identity document; (h) date of death, where applicable; (i) the date on which the natural person became the beneficial owner; (j) the nature and extent of the rights which held directly or indirectly by each beneficial owner, (k) his role in the Explicit Trust or similar legal arrangement, (l) any other information and/or supporting documents deemed necessary by CySEC for the purpose of identifying the beneficial owners according to the Law.
CySEC may suspend the registration of an Explicit Trust in the Register for a period of time it deems necessary, in cases where it considers for any reason that information or data or documents or forms disclosed are inaccurate and/or incomplete and/or false.
In the event that CySEC suspends the registration of an Explicit Trust in the Register, it shall notify the Trustee or Other Equivalent by setting a deadline of fifteen (15) days to correct the relevant information and/or provide an explanation.
Filing
- A trustee of an existing trust has 6 months to file the application with CySec via the online system. The 6-month period begins from the date of the publication of the Regulations which is the 18th June 2021.
- A trustee of a newly registered express trust (or other equivalent person having control) who resides in the Republic needs to file an application with CySec with 15 days from his/her appointment as trustee informing CySec of the particulars aforementioned.
- Any amendments or changes to the structure – parties of a trust are to be notified within 15 days from the date of when the amendment/change came into the trustee’s knowledge.
- If the change relates to a change in trusteeship, then this obligation is assumed by the new trustee.
Access to the Register
- Authorised Representatives:
For the purposes of the Regulation, authorised representatives is a trustee who registers with the system, persons to whom access may be granted according to the provisions of the Law. Access is given to such persons.
- Obliged Entities:
Obliged entities that wish to obtain information must pay a fee for the total trusts they wish to obtain information via an application and such access if available for a period of 1 month. In order for obliged entities to gain access, the following are required:
- a declaration by the entity stating that the information is required exclusively for the purposes of applying due diligence measures and client identification
- consent from the settlor of the trust for the proposed access
- any other data/information/documentation that CySEC deems necessary
- Persons who Prove Legitimate Interest:
Third persons, unconnected to a trust who wish to obtain information, will need to file an application via the online portal with evidence as to why information is requested. Once the application has been examined by CySEC and provided that it is approved on the basis that the applicant has, prima facie proven legitimate interest, CySEC informs the trustee of such approval regarding the existence of a legitimate interest and gives the trustee 10 days to present any written submissions. CySEC will consider any such written submissions that may be filed by the trustee and will communicate its final decision to both the applicant and to the trustee.
How we can help
CySEC is yet to release further announcements as to the Trusts Register of the Real Beneficiaries of CySEC.
ConnectedSky Legal & Corporate Consultants Limited, through its dedicated team of business consultants, lawyers, accountants and tax experts will be happy to advise any client as to the obligations deriving from the launching of the Trusts Register.
Contact us:
Tel: +357 22 258800
Fax: +357 22 258801
E-Mail: [email protected]
