Implementation of the Final Solution of the electronic system of the Register of Beneficial Owners

Written by Stelios Spiliotis
30 November, 2023

The Department of the Registrar of Companies and Intellectual Property (the “Department”) has announced the implementation of the Final Solution for the electronic system of the Register of Beneficial Owners (the “BO Register”), commencing on 14 November 2023.

The implementation will be achieved in three stages:

Period A – 14 November 2023 to 31 December 2023:

During this period, all Companies registered under Companies Law, Cap. 113, European Companies (SE), and Partnerships (collectively referred to as “Entities”), or their respective Officers/Partners, are required to record information pertaining to their Beneficial Owners. This obligation applies even if such information was previously recorded in the BO Register during the Interim Solution, necessitating updates in case of any changes. Importantly, no financial penalties will be imposed during this grace period.

Period B – 1 January 2024 to 29 February 2024:

Entities that failed to record information in the Final Solution during Period A will have an opportunity to do so in this period. However, it is important to note that financial penalties will be imposed for non-compliance during this period.

Period C – 1 March 2024 onwards:

Starting from the aforementioned date, all features of the Final Solution will be fully enforced, including the following:

  • Any changes to the information in the BO Register for a specific Entity must be updated within 14 days of becoming aware of such changes.
  • All Entities are required to verify the information recorded in the BO Register annually, during the month of December. This verification process is obligatory, irrespective of whether any changes were made during the year.
  • Penalties for non-compliance will be applied.

Penalties for non-compliance:

It is crucial to emphasize that, beyond individual criminal liability or potential prosecution, a corporate or other legal entity (along with each of its officers) will face a fine of €200 for non-compliance. This fine may be accompanied by a daily penalty of €100 for each day of non-compliance, with a maximum charge of €20,000. Notably, officers of a corporate or other legal entity will be exempt from such fines if they have exercised due diligence in adhering to the provisions of N.188(I)/2007 and Directive P.I. 112/2021, as amended, and the violation is not attributable to their actions, omissions, or negligence.

We are available for any additional inquiries or clarifications you may require.

You May Also Like…