Authors: Spyros Repousis, Petros Lois, Pavlos Kougioumtsidis

Title: Trusts, Central Registry and Real Beneficiary in Cyprus: Historical, Conceptual and Legislative Approach

Abstract

Purpose: The present study shows the numerous and varied legislative provisions and initiatives in Cyprus to reduce illegal movement of funds and money laundering through Trusts.

Design/methodology/approach: It is, therefore, crucial to make an analysis of certain aspects of this legal arrangement, which mainly relate to the issue of transparency, in order to understand the entire chain structure behind the crime of money laundering through Trusts and Ultimate Beneficial Owner.

Findings: Money laundering is inextricably linked with anonymity. The status of the Trust is related and contrastingly distinct from the issue of information exchange between countries regarding the battle against the above phenomena, as the Cyprus in recent years tends to be pressed particularly to the disclosure of bank secrecy data. Under the provisions voted since 2012 and afterwards, the Cyprus Parliament passed a supplementary to the Fiduciaries Law protocol, which was the Central Registry of Trust. Cyprus must ensure that beneficial ownership information is stored in a central register located outside the company. Also, the greater transparency over the identity of Ultimate Beneficial Owner through the establishment of public registers would act as a deterrent to misconduct.

Originality/value: Evidences presented in this paper are important for national and super-national supervisory anti-money laundering bodies and compliance authorities to understand banking practices in Cyprus.