Express Trusts the Register for Beneficiaries

INTRODUCTION

 

On the 18^th of June 2021, the Cyprus Securities and Exchange Commission (the “CySec”) pursuant to Article 61C of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2021 (the “AML Law”) issued a regulation (Regulatory Administrative Act 257/2021) (the “Directive”), identifying the obligations and procedure for the registration, notification, administration, maintenance and update of the information in relation to the Beneficial Owners (the “BOs”) of express trusts and other similar legal arrangements with the electronic system created by CySec (the “System”).

 

Meaning of BO: as per the AML Law a beneficial owner means any physical person who has the ultimate ownership or control of a legal entity and in relation to trusts includes the following persons:

 

1. the settlor,
2. the trustee,
3. the protector (if any),
4. the beneficiary; or
5. any other physical person who exercises control of the trust through director or indirect ownership or other means.

 

Information to be filed as to express trusts and other similar legal arrangements

 

The information that must be submitted in relation to express trusts or other similar legal arrangements in the register is the following:

 

1. Name of the trust;
2. Country of jurisdiction and date of establishment of the trust;
3. Governing law;
4. Date of expiration (if any);
5. In relation to a similar legal arrangement, the type of such arrangement;
6. Information as to the country of domicile or residence of the trustee or other person having an equivalent position and the residential address;
7. In the event that the trustee or other person having an equivalent position is placed or resides outside the EU and concludes a business relationship on behalf of the express trust or the similar legal arrangement in the Republic of Cyprus, the date of commencement of the business relationship, the name of the person with whom a business relationship is concluded as well as the agreement governing the business relationship;
8. In the event that the trustee or other person having an equivalent position is placed or resides outside the EU and acquires immovable property in the name of the express trust or the similar legal arrangement in the Republic of Cyprus, the registration number and address of immovable property as well as the title of ownership of the immovable property;
9. Any other information and/or supporting documents that may be required by CySec.

 

Information to be filed in relation to BOs as to express trusts and other similar legal arrangements

 

The information that must be submitted in relation to BOs of express trusts or similar legal arrangement in the register is the following:

 

1. Name and surname;
2. Father’s name;
3. Date of birth;
4. Place of birth;
5. Nationality(ies);
6. Residential address;
7. Number, type and country of issuance of the identification document;
8. Date of death (if applicable);
9. Date on which the natural person has become beneficial owner;
10. The nature and extent of the beneficial interests held directly or indirectly by each beneficial owner;
11. Role of the said person in the express trust or similar legal arrangement;
12. Any other information and/or supporting documents that may be required by CySec.

 

Access to the Register

 

In accordance with the Directive published by CySec, access to the Register is granted to an authorised user which means a natural person who is registered with the Register:

1. under his capacity as trustee of an express trust or other person having an equivalent position to other similar legal arrangement; or
2. to the following persons as per Article 61C (12) (a) – (d) of the AML Law:

1. to the responsible Supervisory Authority, as defined by Section 59 of the AML Law, Unit, Customs and Excise Department, Tax Department and Police without any limitations;
2. to obliged entities* for due diligence purposes and identification of their clients upon payment of respective fee;
3. to legal or physical persons that can demonstrate legitimate interest in accessing the registry and proving the same through relevant procedure to be implemented, upon payment of respective fee;
4. to legal or physical persons in relation to a trust which holds or owns a controlling interest in a company that is not incorporated in Cyprus upon the written request of the said persons and payment of respective fee;

 

(Collectively referred to as the “Authorised Users”)