The executive and legislative branches of Cyprus have agreed to waive fines imposed in 2024 on individuals and companies for failing to meet the deadline to submit information to the Ultimate Beneficial Owners (UBO) Register.

A revised bill, initially postponed last Thursday at the suggestion of MP Panikos Leonidou, will be reintroduced to Parliament this Thursday. The updated text has secured consensus from the government, Parliament, and all political parties.

Speaking after the parliamentary Commerce Committee meeting, Committee Chairman Kyriakos Hadjiyiannis emphasized that the government has aligned with Parliament's efforts to address outstanding issues related to UBO declarations.

“This is a significant step forward. The government has agreed to suspend the already imposed fines, setting the stage for a structured resolution with revised penalties and daily charges,” said Hadjiyiannis.

He described the previous fines as unjust, noting that many companies intended to comply but were hindered by their scale, workload, or operational constraints.

AKEL MP Andreas Pasiourtides welcomed the government's decision to waive the penalties, which had reached up to €20,000 per company. “This decision is crucial as many companies would have faced closure if required to pay such exorbitant amounts,” he noted.

DIKO MP Panikos Leonidou, who called for the initial postponement, explained that the delay allowed for productive discussions between the executive and legislative branches. The revised bill now limits future fines to a maximum of €5,000 per company, applicable only for late submissions moving forward.

Green Party MP Stavros Papadouris also expressed satisfaction, labeling the waived fines as “excessive.” He urged companies to proactively prepare their UBO submissions before the year’s end.