Elias Neocleous & Co LLC

What does it mean to run a business in a financial world that never stands still? The world of banking and finance is undergoing rapid transformation. From the rise of digital platforms and alternative payment systems to the expanding scope of regulatory oversight, today’s financial environment is more complex and fast-paced than ever. At the center of this change lies a crucial relationship between financial institutions, their clients, and the legal professionals who support them. At Elias Neocleous & Co LLC, we are seeing that the old-school way of doing legal work doesn’t always work anymore. It is not just about knowing the rules. It is about helping clients apply them in a way that fits how their business actually operates. Whether we are supporting a bank with its compliance framework or assisting a company with cross-border financing, our focus is on making legal processes practical and effective. As regulations grow stricter in areas such as anti-money laundering, data protection, and international financial conduct, financial institutions are under increasing pressure. These measures are vital for maintaining trust in the financial system, but they can also lead to delays, friction, and added stress for organisations and their clients. When compliance is handled poorly, the consequences go beyond fines or delays. It can result in another frustrated client and sometimes even a broken relationship with a bank, not because of wrongdoing but because of misinterpretation, rigid processes, or a failure to truly understand the client. In the past, ‘Know Your Customer’ was treated as more like a box-ticking exercise and, if we are honest, in some places it still is. Yet there is a growing recognition that today it must mean something deeper. Effective KYC is not exclusively about suspicion or endless investigation; it is about understanding. It is about knowing not only a client’s immediate needs, but also their ambitions for the future, and aligning those ambitions with the realities and opportunities of the financial system. When approached this way, KYC becomes far more than compliance, it becomes a foundation for trust, a guide for better decision-making, and a bridge to stronger, lasting partnership. This is where the right legal advice proves its true value. We work closely with clients to develop compliance policies that are not only legally sound but also realistic and efficient. This might involve advising on onboarding and know-your-customer procedures, helping a business restructure or reorganise, or even addressing GDPR and cybersecurity through the Tech Law Department of our Law Firm. Our Tech Law Department assists clients to comply with technology-related laws such as GDPR, DORA, NIS2, the Cyber Resilience Act (CRA), the AI Act, and the Cybersecurity Act. For us, every policy, every procedure, is ultimately about people, understanding their goals, easing their burdens, and creating space for them to grow. Too often, good businesses suffer not because they lack substance, but because they fail to present themselves in the way banks expect. It is a little like a CV: not everyone with great talent knows how to showcase it on paper. Beneath the surface, a company may have a strong record and a compelling story, but if that story is not expressed clearly, opportunities can be lost. Banks, for their part, excel at enforcing rules and ensuring that every regulation is observed. But sometimes, in focusing on the checklist, they miss the deeper picture, the essence of the client, the reasons behind a missing document, or the real strengths that lie just out of view. This is where we see our role: to connect the unseen dots, to help clients present their reality in its best light, and to ensure that valuable relationships are built on understanding rather than misunderstanding. We also support clients in their dealings with banks by ensuring that all the necessary paperwork is completed correctly. This includes forms such as UBO (Ultimate Beneficial Owner) declarations and providing clear explanations of the source of funds. By guiding clients through these steps, we aim to minimise errors or delays and keep the process moving smoothly. Supporting clients goes beyond compliance checklists, it means standing with them when questions, conflicts, or cross-border complexities arise. That is why we provide legal opinions on regulatory interpretation, assist in resolving disputes, and advise on structuring transactions across multiple jurisdictions. Our approach is designed to simplify complex processes and manage legal risks, helping clients move forward with greater clarity and confidence. We are also closely following developments in technology, particularly artificial intelligence, and how they are beginning to influence the legal and compliance landscape. In the financial sector, AI is increasingly used to assist with tasks such as document review and regulatory tracking. While we do not currently use AI tools for client-facing work, we are actively exploring how such technologies might be introduced safely and responsibly in the future. Confidentiality, accuracy, and compliance with regulatory standards remain key considerations, especially in a highly regulated environment like Cyprus. Internally, we are developing NeoLaw.ai, a platform designed to support our legal teams with research, document analysis, and the study of Cyprus case law. Although not a client-facing tool, NeoLaw.ai reflects our commitment to innovation and efficiency. By reducing time spent on repetitive tasks, it allows our lawyers to focus more on complex legal matters where expert judgement is essential. Whether you are a business expanding into new markets, an investor navigating regulatory risk, or an individual applying for finance, the way legal and compliance issues are handled can significantly affect your experience and may even define the entire journey of a business.  Clear and responsive legal support helps to avoid delays and uncertainty, and we believe this is key to getting things done properly. The legal profession continues to evolve, and in banking and finance the role of the lawyer is no longer confined to citing regulations or drafting documents. That world is gone. Our role has become something more human and more essential: protecting trust, uncovering what lies beneath the paperwork, and giving clients a voice in a system that often has little patience for nuance. Yet its core purpose remains unchanged: to serve people and support the systems that enable business and finance to operate fairly and transparently. What is changing is how we deliver that service, through smarter tools, stronger collaboration, and a clearer understanding of our clients’ real-world challenges. The financial world will only grow faster, more digital, and more demanding. That is a fact. What matters is how we respond to it. At Elias Neocleous & Co LLC we are proud to be part of this transformation. We choose to meet that future head-on, with sharper tools, broader vision, and the determination to make law serve people, not slow them down. As a Cyprus based firm, advising clients both locally and internationally, we are committed to providing legal support that is technically strong, commercially aware, and designed to help our clients move forward with clarity and confidence in an increasingly digital financial world. It means a legal partner who keeps pace with change and helps them stay one step ahead of it. Because in the end, true clarity is born where strict rules meet human understanding, and that is the space we choose to work in.    

Curious about how we can protect our financial system from illicit activities? The European Union has stepped up to the challenge with a robust and comprehensive anti-money laundering (AML) framework.This article explores the complex web of regulations, directives, and authorities that are the backbone of the EU’s defense against money laundering and terrorist financing. Businesses and financial institutions within the EU are gearing up to navigate this intricate landscape more effectively. Embracing these AML regulations isn't just about compliance – it's about establishing a culture of integrity and responsibility. By staying ahead of these stringent measures, companies not only protect themselves from financial crime but also build stronger trust and credibility in the global market. This framework is not just a requirement; it’s a strategic advantage that ensures sustainable growth and resilience in today's interconnected world. The Pillars of EU's AML Framework The EU's AML framework is built on three crucial pillars: the Anti-Money Laundering Regulation (AMLR), the Anti-Money Laundering Authority (AMLA), and the Anti-Money Laundering Directive (AMLD). Each pillar plays a vital role in preventing the misuse of the financial system for money laundering by corporate entities and through financial transactions. We have  discussed this in previous articles which can be found on Mondaq here and here. Anti-Money Laundering Regulation (AMLR) The AMLR stands as a testament to the EU’s commitment to standardising anti-money laundering measures across its member states. What are the key provisions that make this regulation so pivotal? Risk-Based Approach: Financial institutions must adopt a risk-based approach to identify, assess, and mitigate risks related to money laundering and terrorist financing. This ensures that resources are allocated efficiently, focusing on areas with higher risks. Customer Due Diligence (CDD): Enhanced CDD measures require verifying customer identities, understanding business relationships, and continuously monitoring transactions. Special attention is given to politically exposed persons (PEPs) and high-risk third countries. Beneficial Ownership Transparency: Central registers for beneficial ownership information are mandated, accessible to competent authorities and financial intelligence units (FIUs). This transparency aims to prevent the misuse of corporate structures for illicit purposes. Reporting Obligations: Obliged entities must promptly report any suspicious transactions to FIUs, including transactions that appear unusual or inconsistent with a customer's known profile or business activities. Sanctions and Penalties: Stringent sanctions and penalties for non-compliance underscore the importance of adherence to AML regulations, including administrative fines and potential license withdrawals for severe breaches. Anti-Money Laundering Authority (AMLA) Is it enough to have regulations without effective oversight? The establishment of the AMLA represents a significant leap forward in ensuring the consistent and effective application of AML rules across the EU. Supervisory Role: The AMLA oversees national supervisory authorities, conducting assessments, providing guidance, and coordinating joint supervisory actions. Direct Supervision: For certain high-risk financial institutions, the AMLA has direct supervision and on-site inspection authority, mitigating risks associated with cross-border operations and complex financial structures. Technical Standards and Guidelines: Developing technical standards, guidelines, and recommendations, the AMLA facilitates uniform implementation of AML measures covering CDD, risk assessment, and reporting obligations. Coordination and Cooperation: Enhancing cooperation among national FIUs and relevant authorities, the AMLA promotes information sharing and joint investigations to improve the overall effectiveness of the EU's AML framework. Advisory Role: Advising the European Commission on legislative and policy initiatives, the AMLA ensures that the AML framework remains dynamic and responsive to emerging threats and challenges. Anti-Money Laundering Directive (AMLD) The AMLD complements the AMLR by setting out detailed requirements for member states to implement in their national legislation. How do these directives adapt to the diverse and dynamic nature of financial crimes? Scope of Application: The AMLD applies to a wide range of entities, including financial institutions, legal professionals, real estate agents, and virtual asset service providers (VASPs), ensuring comprehensive coverage of sectors vulnerable to money laundering and terrorist financing. Enhanced Due Diligence (EDD): Mandating EDD measures for high-risk situations, such as transactions involving PEPs or countries with weak AML controls, the directive includes obtaining additional information about customers and the source of funds. Third-Party Reliance: Allowing obliged entities to rely on third parties for CDD measures under certain conditions, the AMLD aims to reduce duplication of efforts and streamline compliance processes. Training and Awareness: Member states must ensure that obliged entities provide regular training on AML obligations and emerging trends, maintaining a high level of vigilance and expertise within the industry. Whistleblower Protection: Provisions to protect individuals who report suspicions of money laundering or terrorist financing encourage whistleblowing and support the detection of illicit activities. Record Keeping: Obliged entities must maintain records of CDD information, transaction data, and internal reports for a specified period, crucial for audits, investigations, and compliance reviews. Cooperation with Third Countries: Emphasising cooperation with non-EU countries to combat money laundering and terrorist financing globally, the AMLD includes sharing information, conducting joint investigations, and providing technical assistance. Beneficial Ownership and the 25% Threshold How do we identify the true owners behind complex corporate structures? Beneficial ownership transparency is a critical component of AML regulations, aimed at preventing the misuse of corporate entities for illicit activities. Key Aspects of the 25% Ownership Threshold: Direct and Indirect Ownership: The 25% threshold applies to both direct and indirect ownership, including shares held through intermediaries or complex ownership structures. Transparency and Disclosure: Legal entities must maintain accurate and up-to-date information on their beneficial owners, recorded in central registers accessible to competent authorities and FIUs. Reporting Obligations: Obliged entities must conduct due diligence to identify beneficial owners when establishing business relationships or conducting transactions. Enhanced Due Diligence (EDD): For beneficial owners who are PEPs or from high-risk countries, enhanced due diligence measures must be applied. Legal and Regulatory Implications: Non-compliance with beneficial ownership disclosure requirements can result in significant legal and regulatory consequences, including administrative fines, sanctions, and potential criminal liability. AML in the World of Football What about the world of sports, where enormous financial transactions occur frequently? The AML framework has specific implications for football, where vast sums of money flow through transfers, sponsorships, and other financial activities. Transfer Market Scrutiny: Football clubs are required to conduct thorough due diligence during player transfers to ensure compliance with AML regulations. Sponsorship and Endorsements: Clubs must verify the legitimacy of sponsors and endorsees to prevent money laundering through these channels. Financial Fair Play: The AML regulations support UEFA’s Financial Fair Play regulations, ensuring that clubs operate within their financial means and maintain transparency in their financial dealings. A recent article by our firm’s Tax Consultant & Manager – Compliance Officer, Michael Loizou, analyses this topic in more depth. You can read it on Mondaq here. Although Cyprus has not still officially adopted 6th AMLD, here is a graphic representation of the evolution of the EU Anti-Money Laundering Directives. It illustrates the timeline and progression from the First AMLD in 1991 to the Sixth AMLD in 2021. How do we continue to evolve in the face of new threats? As obliged entities, service providers within the European Union play a crucial role in upholding the robust anti-money laundering (AML) framework set forth by EU regulations. To maintain compliance and better serve their clients, these entities must implement rigorous due diligence procedures, including thorough customer identification, risk assessment, and ongoing monitoring of transactions. By staying informed about the latest directives and regulatory updates, service providers can adapt swiftly to evolving threats and regulatory expectations. This proactive approach not only safeguards against financial crime but also strengthens client relationships by demonstrating a commitment to transparency and security. Moreover, maintaining a high standard of professionalism and ethical conduct not only enhances trust but also positions service providers as reliable partners in the global marketplace. What more can be done to fortify our financial systems? The answer lies in continued innovation, cooperation, and a relentless pursuit of transparency and accountability. Elias Neocleous & Co LLC is dedicated to helping businesses and financial institutions navigate and implement these crucial AML measures within the EU. Our expertise ensures clients remain compliant and well-prepared for evolving regulations, safeguarding their operations and enhancing their market reputation. Authors: Dorina Mastora, Deputy Compliance Officer, and Kyriaki Stinga, Senior Associate

Xenia Kalogirou of Elias Neocleous & Co discusses the rise of the concept of Open Finance as incorporated in the Framework for Financial Data Access I) Overview On 28 June 2023, the European Commission (EC) published a set of legislative proposals on payment services; on the much anticipated introduction of a digital euro; and on the sharing of financial data. These proposals aim to modernise the financial sector, align with the ongoing digital transformation, cultivate data-driven innovation and promote a competitive digital ecosystem. Simultaneously, they also seek to safeguard consumers’ interests, ensure fair competition, and bolster security and trust. Apart from the third Payment Services Directive (PSD3) and the Payment Services Regulation (PSR), the legislative proposals included a Framework for Financial Data Access (FiDA), also commonly referred to as the Open Finance Framework (OFF). FiDA is a flagship initiative of the EU Digital Finance strategy, built upon the concept of customers’ permission to share their data. The concept was nurtured under the second Payment Services Directive (PSD2) through the ‘Open Banking’ framework and now incorporated in FiDA. While the current PSD2 has enabled customers to allow Payment Services Providers (PSPs) to access their payment accounts’ data for payment initiation and account information services, FIDA now goes even further and extends the ‘Open Banking’ concept by introducing ‘Open Finance’.  Under this broader perspective, customers will be able to exercise control over their data across all facets of financial services. This is expected to result in the introduction of new types of services, business models and operations while leveraging technology and external data sources. II) Scope In-scope customer data: The scope of customer data (Customer Data) under FiDA includes: mortgage credit agreements, loans and all other accounts which are not yet covered by PSD2 including balance, conditions and transaction details; creditworthiness assessments performed during a loan application process or a request for a credit rating; savings, investments in financial instruments, insurance-based investment products, crypto-assets, real estate and other related financial assets as well as the economic benefits derived from such assets; suitability and appropriateness assessment data under Markets in Financial Instruments Directive 2014/65/EU (MiFID) and Insurance Distribution Directive (EU) 2016/97 (IDD); non-life insurance products, with the exception of sickness and health insurance products; pension rights in occupational pension schemes and pan-European personal pension products. In-scope entities: FiDA applies to the following entities, with only limited exclusions, when acting as data holders or data users (DA Institutions): Credit institutions Payment institutions, including account information service providers (AISP) and exempted payment institutions under PSD2 Electronic money institutions, including exempted e-money institutions MiFID investment firms MiCA crypto-asset service providers Issuers of asset-referenced tokens Alternative investment fund managers (AIFMs) UCITS management companies Insurance and reinsurance undertakings Insurance intermediaries and ancillary insurance intermediaries Institutions for occupational retirement provision Credit rating agencies Crowdfunding service providers PEPP providers Financial information service providers (FISPs) III) Data Holders Data holders are the financial institutions listed in points (a) to (n) above (Financial Institutions), other than an AISP that collect, store and otherwise process Customer Data and must make available such data to the customer on request or from the data user (i.e. other financial institution) on the customer’s request. This access must be granted based on generally recognised standards. Data holders must provide customers with a permission dashboard to monitor and manage the permissions they provide to data users. The dashboard must provide the customer with an overview of each ongoing permission given to data users such as the name of the data user, the customer account, the purpose of the permission, the categories of data being shared and the period of validity of permission. In addition, the dashboard must allow the customer to withdraw and re-establish permissions given to data users and include a relevant record of withdrawn or expired permissions.  Finally, the dashboard must be “easy to find” in its user interface and provide clear, accurate and easily understandable information. The processing of Customer Data that constitutes personal data must be limited to what is necessary and for retention periods in accordance with the General Data Protection Regulation 2016/679 (GDPR). IV) Data Users and FISP Authorisation Data users are any of the DA Institutions which, following the permission of a customer, have lawful access to Customer Data. This means that only Financial Institutions and authorised FISPs are eligible for data access. The regulation describes the authorisation process for FISPs. FISPs must either be established in an EU Member State or designate a legal representative in the EU. This means that overseas firms that require access to Customer Data in the EU must have a written agreement designating a person based in the EU to act on their behalf. Similar to Open Banking, data users can only access the data with their customers’ permission, and only for the purposes and under the conditions specifically agreed to by the customers. For the purposes of effective management of Customer Data, a data user shall: not process any customer data for purposes other than for performing the service explicitly requested by the customer; respect the confidentiality of trade secrets and intellectual property rights; put in place adequate technical, legal and organisational measures in order to prevent the transfer of or access to non-personal customer data that is unlawful; take necessary measures to ensure an appropriate level of security for the storage, processing and transmission of non-personal customer data; not process customer data for advertising purposes, except for direct marketing; where the data user is part of a group of companies, Customer Data shall only be accessed and processed by the entity of the group that acts as a data user. V) Financial Data Sharing Schemes Data holders and data users will be required to join one or more Financial Data Sharing Scheme (FDSS) which will govern data access to Customer Data in line with FIDA and other EU rules. In addition, those schemes will be mandated to develop common standards for both data and technical interfaces to facilitate customer requests for data sharing. Unlike PSD2 open banking rules, FDSS introduces an important element: the establishment of a model to determine the maximum compensation that a data holder is entitled to charge. This compensation pertains to making data available through an appropriate technical interface for sharing with data users in accordance with common standards. Schemes must also set the contractual liability of its members and establish a dispute resolution regime to resolve disputes among scheme members and membership issues. The European Commission is tasked with setting rules to cover the event that a FDSS is not developed for a category of customer data. In this case, delegated acts would specify the common standards for the data and the technical interfaces allowing customers to request data sharing, the model for determining the maximum compensation that a data holder is entitled to charge for making the data available, and the liability of the entities involved. VI) Industry’s Position In recent years, while some financial institutions opted to merely comply with PSD2, others seized the opportunity to generate additional value for their customers by providing access to financial products and services other than payments using application programming interfaces (APIs). For instance, there are financial institutions developing APIs that allow their “clients across all segments to integrate them in their preferred applications and internal processes to improve financial decision-making and efficiency, but also in consumer applications to offer seamless experiences to their clients and generate new revenue streams for the business” (see The Paypers, Open Finance Report 2023, ING, The Open Banking Ecosystem in Action). Other use cases include the formation of partnerships between banks and data aggregators, as well as the emergence of consortiums with the aim to standardise the data exchange protocols. Consultancy firms have also developed various models to help financial institutions assess their Open Finance maturity. These models aim to highlight both strengths and weaknesses in capabilities, providing insights for exploring new income streams via Open Finance-related APIs. Additionally, they assist in ensuring compliance with FiDA requirements. Due to this evolving landscape, we are witnessing the emergence of advanced payment options like Buy Now, Pay Later and payment request API. Concurrently, new services such as comprehensive financial management, improved personalised services and e-invoicing for insurance, telecommunication, and utility bills, are unlocking and delivering added value to consumers. The continuous growth of Open Finance is largely inevitable. However, the velocity of that growth in individual countries depends on the extent that Open Finance is tailored to specific market considerations. VII) Implementation of FiDA Provisions of the FiDA will apply 24 months after FiDA enters into force, except for those relating to the FDSS and authorisation requirements for FISPs which will apply 6 months earlier. The timeline laid down by the European Commission is very ambitious. Establishing data-sharing agreements, developing and establishing data-sharing schemes and relevant standards, developing the governance structures of schemes, etc., will likely take significantly longer, as demonstrated by the implementation of the PSD2 framework. In order to ensure successful implementation across the financial sector, a more incremental approach would be both realistic and effective taking into consideration the technical complexities, the number of players involved and the significant implementation costs of implementing FIDA. The proposals of the European Commission will be reviewed by the European Parliament and Counsel. The Committee on Economic and Monetary Affairs (ECON) was appointed as the lead Committee to deal with the FiDA proposal. On 13 December 2023, ECON has published a draft report on FiDA by proposing certain amendments related to enhancement of customer trust, promotion of innovation and improvement of interoperability and supervision. This review constitutes only a starting point for ECON’s work on FiDA. Assuming that the texts are agreed upon by the end of 2024 or early 2025, the new regime is anticipated to go into effect in 2026. Author: Xenia Kalogirou, Senior Associate at Elias Neocleous & Co LLC

The Latin maxim audi alteram partem, meaning “listen to the other side,” is a fundamental principle of natural justice. It safeguards access to justice and ensures a fair hearing for all parties—not only those formally joined in legal proceedings but also third parties whose rights may be affected. Its origins can arguably be traced back to ancient Greece. The renowned orator Demosthenes noted that the Athenian judicial oath—attributed by some, albeit uncertainly, to Solon—required judges to listen equally to both the prosecutor and the defendant (καὶ ἀκροάσομαι τε καὶ τοῦ κατηγόρου καὶ τοῦ ἀπολογουμένου ὁμοίως ἀμφοῖν). Although the audi alteram partem principle is widely applied in judicial systems worldwide, limited exceptions exist. These usually involve circumstances of urgency, public safety, or national security. Such exceptions must, however, be reasonable, proportionate, and justified in context. Natural justice and procedural fairness demand that parties directly or indirectly affected by legal proceedings are given the opportunity to be heard and to challenge decisions or procedures taken in their absence. The Audi Alteram Partem Principle in Cyprus under the Old Civil Procedure Rules Under the former Civil Procedure Rules (CPR), specifically Order 48, Rule 8(4), it was stated: “Any person (other than the applicant) affected by an order made ex parte may apply by summons to have it set aside or varied and the Court or Judge may set aside or vary such order on such terms as may seem just.” In Ktoridis Giannakis v. Alpha Bank Cyprus Ltd (2014) 1 C.L.R. 1173, the Supreme Court of Cyprus affirmed: “It is a well-established principle in our legal system, expressed by the Latin maxim audi alteram partem, that the court does not issue an order without first hearing the other party. However, by way of exception, the legislator, in certain cases, allows the granting of ex parte relief… Order 48(8)(4), which follows O.48(8)(1), concerns every order that is issued ex parte. Its objective is evidently to provide the possibility of reconsidering a matter that was decided ex parte, when the person affected wishes to exercise their fundamental right to be heard…” Although this rule affirmed the principle of audi alteram partem, the interpretation of “any person” under Rule 8(4) was restrictive. In Heli-Air v. Drescher (1988) 1 AAΔ 234, the Court held that this phrase did not extend to third parties unless they had applied to be formally joined in the proceedings: “We agree with the learned trial Judge that paragraph 4 of rule 8 of Order 48 does not in general give the right to a third person to apply by summons for the discharge or variation of an interim order issued in proceedings in which such a person is not a party. We do not accept the argument that a reference to ‘any person’ covers a person in the circumstances of this case where no application to be joined as a party was made and where the very ownership and right of possession of the subject property were in issue and were sought to be determined by the Court in the course of determining an application for the discharge or variation of an interim order”. Similarly, in Koui v. Christodoulou (2010) 1 Α.Α.Δ. 401, citing Heli Air,  the Supreme Court reaffirmed: “The words ‘any person’ in O.48, r.8(4) do not extend to persons in respect of whom no application for joinder has been filed, in proceedings where the substantive issues remain open”. These aforementioned rulings were received by legal practitioners with skepticism as they created confusion and also complicated the procedure unnecessarily.[1] This is because, in practice, third parties affected by an ex parte injunction often had no real connection to the main dispute or were not directly (or even indirectly) targeted by any claims. To remedy this, several judges in the interests of natural justice and fairness did not follow the strict letter of Heli Air and permitted such third parties to intervene for the limited purpose of challenging the ex parte order, without needing to be joined to the main action.[2] For example, In Gerd Jakob v. Ivan Ivanovich Mazur (2015), the Court held: “Since the interlocutory injunction may directly affect the applicants’ property interests… it would be unfair not to allow them to intervene… solely for the purposes of the interlocutory injunction.” The Approach under the New Civil Procedure Rules of 2023 The new Civil Procedure Rules  which came into force in September 2023 have provided much-needed clarity in this respect and remedied what could be described as unsatisfactory situation. Today, a third party individual or corporate entity affected by an ex parte order can challenge it without first being joined as a party to the main action. The Court of Appeal recently confirmed this position whilst reviewing a decision where the first instance court had (falsely) rejected an application by an affected party to intervene in the proceedings. On appeal, the Court addressed both the old and new CPR regimes. It particularly referred to New Rule 23.14, which reads: “23.14. Application to set aside or vary an order issued without notice (1) Any party or person affected by an order issued on an application which was not served on them before the order was issued may apply to set aside or vary the order. (2) A person who is not already a party to the action does not need to become a party solely for the purpose of submitting an application under Rule 23.14(1)…” The Appeal Court emphasized that neither the law nor the new rules require a person affected by an order to become a party to the action in order to challenge it. This interpretation is consistent with the decision in the English case of Cretanor Maritime Co. Ltd v. Irish Marine Ltd [1978] 1 WLR 966 and also aligns with New Rule 23.1, which allows such persons to be appointed by the court as “respondents” to the application rather than formal parties.   Conclusion The new Civil Procedure Rules represent a major advancement in ensuring access to justice and correcting procedural ambiguities. By affirming that those affected by court orders—regardless of party status—have the right to be heard, the Rules reinforce the fundamental value of audi alteram partem principle. This development replaces a previously rigid and overly formalistic approach with one grounded in fairness, clarity, practicality and, of course, natural justice.   By Chrysanthos Christoforou (Partner) and Maria Keliri (Associate) Elias Neocleous & Co LLC   [1] It is the opinion of the authors that reading between the lines of Harazim Richard (2016) 1 AAΔ 2850 one could argue that the judgments of Heli Air and Koui (above) received also judicial criticism. [2] See 1. Chivas Holdings (IP) Ltd v. Γενικού Εισαγγελέα κ.ά  (2011), 2. Nikolas Koumenidis a.o. v. Gerrard Culbert a.o. (2009,) 3. Gerd Jakob v. Ivan Ivanovich Mazur  (2015),

Elias Neocleous & Co LLC(ENC) was once again at the forefront of the 2025 CG Summit Cyprus, a notable gathering hosted by the Legal500, which saw the participation of legal professionals, industry experts, and key decision-makers from across the country.  The panel discussion of ENC focused on the newly implemented Digital Resilience Operational Act (DORA), its applicability and technical specifications, alongside the potential impact of such technological compliance regulations. Moderated by ENC partner, Andrea Kallis Parparinou, the panel discussion featured Michael Ioannou, Chief Information Officer at ENC, Emilios Charalambous – Associate at ENC, and Sofia Savva, Head of Legal & Corporate Governance at Societe Generale Bank Cyprus. Kicking things off by pinpointing the increase in digitalization and cyber threats, Andrea remarked that “The ever-increasing reliance on tech is directly connected to the increasing risk of exposure to technology and the EU wants to regulate these ICT related risks”, before Emilios Charalambous provided the audience of 100+ legal professionals with the background rationale of DORA coming into play, its current scope and the potential penalties, explaining that “by taking a wide view, we are looking at an act that’s been implemented in an attempt to address the growing cybersecurity risks and operational challenges faced by the financial sector due to digital transformation”. Michael Ioannou’s technical expertise showcased the key pillars of the act and the considerations that should be kept in mind when dealing with its compliance requirements, and set out the preexisting compliance standards that would support a company’s operations regardless of whether they fall within the scope of the act or not. The experience of Sofia Savva in the banking industry was a vital addition to the panel, as her perspectives provided insights into the internal thinking process and approach of an established financial entity, remarking that “While banks are making progress, some key challenges remain such as the high implementation costs (investing in new cybersecurity and compliance tools), managing compliance across multiple ICT service providers and regulatory uncertainty.” Overall, all panelists in combination provided valuable insights and practical advise necessary for the rapidly growing technological regulation industry. Moving forward, ENC continues to prioritise legal excellence, focusing on delivering strategic advice and innovative solutions. The Summit once again highlighted our commitment to a forward-thinking approach, helping our clients navigate the changing legal landscape whilst planning proactive actions rather just reactive compliance. For further information or inquiries, please contact Andrea Kallis Parparinou at [email protected]

In a groundbreaking decision issued by the Cyprus Labour Disputes Court on 27/3/2025, application 260/2018, it was recognized for the first time that employees on indefinite contracts fall within the scope of European Directive 1999/70/EC and can invoke unfair discrimination concerning their pension benefits. As the courts of an EU member state, Cypriot courts respect and apply European law, ensuring the protection of citizens’ rights and compliance with the obligations arising from EU directives. This ruling reaffirms the importance of aligning national legislation with European law and guaranteeing equal treatment for employees. The case was handled by the firm’s partner/lawyer George Tsardellis and associate/lawyer Kriton Dionysiou. For a more in-depth analysis of this topic, please reach out to George Tsardellis or Kriton Dionysiou

At Elias Neocleous & Co LLC, we are dedicated to recognising and advancing talent based on innovation, expertise, and leadership. We are very proud to announce the well-earned promotions of the following individuals to senior positions within our firm. Each of these professionals has demonstrated exceptional skill, acumen, mentorship, and guidance, making significant contributions to our firm's success and growth. Promotion to Advocate / Partner Kyriaki Stinga Since joining the firm in 2012, Kyriaki has demonstrated exceptional leadership in managing the Corporate & Commercial department, one of the firm’s largest practice areas, while mentoring team members. She brings extensive experience in corporate and commercial law, with a particular focus on cross-border transactions, including acquisitions, mergers, divisions, and re-domiciliations. Throughout her tenure, she has advised on numerous high-value, multi-million-dollar transactions. Promotion to Advocate / Counsel Marina Joud Marina has extensive experience in civil, corporate, commercial, and banking litigation, as well as international trade, torts, company liquidation, and forex litigation. A member of the firm since 2007, she has successfully represented the special administrator of a major financial institution in numerous litigation cases filed by depositors across Cyprus and has acted on behalf of one of the country’s largest forex trading companies in complex disputes. Marina has also represented international banks in asset recovery cases, achieving full recovery of stolen funds. Additionally, she represents the Limassol Municipality in their various cases. Christiana Pyrkotou A member of the firm since 2010, Christiana specialises in civil, corporate, and commercial litigation, with a focus on contract law, shareholder and joint-venture disputes, derivative actions, international trade, torts, and company liquidation. She has advised and represented national and international clients in complex court proceedings, including Mareva injunctions, disclosure orders, and multi-jurisdictional disputes. Christiana also has extensive experience in asset recovery, enforcement of foreign judgments, and advising creditors on liquidation and debt collection procedures. Vassilis Psyrras Vassilis Psyrras has extensive experience in admiralty claims, ship and project finance, debt restructuring, yacht leasing, and corporate and commercial matters. His background in commercial roles with Piraeus-based shipping companies, including seagoing experience as a cadet officer, gives him unique insight into the operational and commercial needs of the shipping industry. With the firm since 2016, Vassilis has advised major banks, shipowners, and financial institutions on complex transactions and disputes, representing clients in high-value litigation and arbitration proceedings. Elena Christodoulou Elena Christodoulou is a specialist in corporate and tax law, with a strong focus on international and European tax law, EU regulatory compliance, and private client advisory. With extensive experience in cross-border tax structuring and complex transactions, she provides strategic counsel to blue-chip corporations and high-net-worth individuals. Her expertise spans corporate tax planning, trust law, and wealth management, making her a trusted advisor in the field. A sought-after speaker at international tax and regulatory panels, Elena also contributes to leading industry publications. Her deep knowledge, strategic acumen, and ability to navigate intricate legal matters make her an invaluable asset to the firm. Promotion to Advocate / Senior Associate Aimilia Efstathiou Aimilia Efstathiou has established herself as a pivotal member of the litigation team, since joining the firm in 2016, consistently demonstrating exceptional legal expertise and a strategic approach to complex disputes. Recognized for her proficiency in high-value commercial litigation, she provides strategic legal counsel across a broad spectrum of commercial law matters, including contract and tort law, shareholders’ disputes, trust law, and jurisdictional issues. Her deep understanding of commercial litigation, sharp analytical skills, and unwavering commitment to excellence make her an indispensable asset to the firm. Promotion to Senior Legal Counsel / Head of India Desk Motaher Chowdhury Motaher Chowdhury has extensive expertise advising international clients, multinational corporations, and private clients on a broad spectrum of corporate and commercial matters. Since joining in 2009, he has been involved in corporate structuring, tax-efficient planning, and cross-border transactions. His strategic counsel has been key in navigating complex legal frameworks, ensuring strong corporate governance, and facilitating seamless operations. Recognized as a leading India specialist, Motaher heads the firm’s India Desk, advising businesses and investors on cross-border structuring, compliance, and market entry. His expertise and strong connections with top Indian firms has contributed to the firm’s continued growth and recognition in this area. Advancing diversity in leadership roles These promotions are a testament to merit, excellence, and dedication. Each of these individuals has demonstrated outstanding commitment to our firm, our clients, and the legal profession, earning their place in senior roles through their expertise and hard work. At Elias Neocleous & Co LLC, we are committed to fostering a strong, diverse and dynamic leadership team where talent thrives, enhances our ability to deliver excellence and strengthens our capacity to serve our clients at the highest level. Join us in congratulating these individuals on their well-deserved promotions! Their success is an inspiration, and we look forward to their continued impact on our firm’s future.

Elias Neocleous & Co LLC is delighted to announce its recognition as Mediterranean Law Firm of the Year 2025 at the prestigious Citywealth International Financial Centre (IFC) Awards. The awards ceremony took place on January 28th at One Moorgate Place in the City of London, bringing together over 120 of the world’s leading wealth advisors and private client experts. Now in their fourteenth year, the Citywealth IFC Awards celebrate excellence in the private wealth sector across major international financial centres. The event was hosted by The Rt Hon. The Lord Brady of Altrincham, with a distinctive Scottish touch added by a kilted bagpiper in honour of Burns Night. The awards, established by Citywealth CEO Karen Jones in 2010, recognise the highest standards of service and expertise within the industry. An international panel of distinguished practitioners from various sectors rigorously assessed this year’s nominees, ensuring that winners represent the very best in the field. The accolade reaffirms Elias Neocleous & Co LLC’s position as a leading force in the Mediterranean legal landscape, known for its exceptional expertise and delivery of innovative solutions to its clients. Managing Partner Elias Neocleous, who attended the event in person, expressed his pride in receiving this esteemed award: “It is an immense honour to be recognized as Mediterranean Law Firm of the Year by Citywealth. This award highlights the hard work, dedication, and excellence of our entire Private Wealth team. We remain committed to delivering world-class legal services to our clients and to driving innovation in the private wealth sector.” We extend our sincere gratitude to Citywealth, the esteemed panel of judges, and our clients for their trust and support. This recognition strengthens our resolve to continue setting new benchmarks in legal excellence.  

We are honored to announce that Elias Neocleous & Co LLC (ENC) has been recognized for the 6th consecutive year in the prestigious GRR100 list, as published in the 2024 edition of Global Restructuring Review (GRR). This guide highlights the world’s leading law firms in cross-border restructuring and insolvency matters. GRR is a highly regarded resource for global news and analysis on restructuring and insolvency law, offering valuable insights into trends, key players, growth opportunities, and emerging challenges. We are proud to represent Cyprus in this distinguished ranking of top firms worldwide that demonstrate exceptional expertise and experience in these critical areas. ENC Managing Partner Elias Neocleous commented, “Earning a place on the GRR100 list for the sixth consecutive year reflects our firm’s unwavering commitment to excellence and innovation in cross-border restructuring and insolvency. It is a recognition of the hard work and dedication of our exceptional team, whose achievements continue to set a high standard in the industry. This accolade motivates us to further enhance our capabilities as we look forward to continued success in 2025 and beyond. For further details about our restructuring and insolvency services or the GRR100 listing, please reach out to ENC Partner Demetris Roti or your usual contact at Elias Neocleous & Co LLC.  

Elias Neocleous & Co LLC is pleased to announce its achievement of ISO/IEC 27001:2022 certification for Information Security Management.This significant accomplishment reflects the firm’s dedication to maintaining rigorous standards for data protection, client confidentiality, and resilience against emerging cyber threats. It is worth noting that this achievement was accomplished entirely through the internal resources and functions of the firm. Its dedicated team worked diligently to ensure the Confidentiality, Integrity, and Availability of the firm's digital infrastructure and data. This approach highlights the firm's strong commitment to leveraging its internal expertise and capabilities to achieve the highest standards of security. In today’s digital landscape, where the prevalence and sophistication of cyber threats continue to rise, the importance of safeguarding sensitive information cannot be overstated. The legal profession, entrusted with highly confidential and critical data, must uphold the highest levels of security to mitigate risks and ensure the trust of its clients. This milestone solidifies Elias Neocleous & Co LLC’s reputation not only as a leader in the legal sector but also as an innovator in integrating advanced compliance and security protocols into our operations. The ISO 27001 certification confirms that the firm’s information security management system has been independently assessed and meets globally recognized best practices. This structured approach ensures that all data, particularly client information, is handled with the utmost care, minimizing vulnerabilities while enabling swift and effective responses to potential risks. Cybersecurity is no longer an ancillary concern, it is integral to ensuring privacy and protecting the integrity of both client information and professional operations. Through the adoption of ISO 27001 standards, Elias Neocleous & Co LLC underscores its commitment to managing risks proactively, implementing robust measures to detect and mitigate threats, and fostering a culture of vigilance across all areas of its operations. This certification is more than an accreditation, it is a reflection of the firm’s core principles of integrity, accountability, and confidentiality. In an environment where the legal and regulatory frameworks surrounding data privacy are increasingly stringent, compliance with these standards further demonstrates the firm’s alignment with international best practices and its responsibility to its clients and stakeholders. Elias Neocleous & Co LLC views this achievement as part of its ongoing commitment to continuous improvement, particularly in adapting to the challenges of a rapidly evolving digital and regulatory environment. By prioritizing information security and privacy, the firm reinforces its role as a trusted partner in safeguarding not only legal interests but also the sensitive information entrusted to its care.  

Elias Neocleous & Co LLC proudly announces its outstanding achievement in the IFLR1000 2024 rankings.The firm has been awarded a Tier 1 ranking in the field of financial and corporate law, affirming its status as a leader in Cyprus’ legal sector. This recognition reinforces our dedication to delivering exceptional legal services and maintaining excellence in an increasingly competitive and dynamic legal environment. Notably, four of our lawyers have also been honoured with distinguished recognition from IFLR1000 for their professional expertise and contributions. Managing Partner Elias Neocleous has earned the prestigious ‘Market Leader’ rating, while Partner Costas Stamatiou has been acknowledged as a ‘Highly Regarded’ lawyer. Additionally, Partner Demetris Roti and Senior Legal Counsel Michael Pelosi have both been recognised as ‘Notable Practitioners’. IFLR1000, a leading international legal market research brand, annually ranks the top law firms and lawyers in financial and corporate law globally, based on transactional evidence and client feedback. The accolades received by Elias Neocleous & Co LLC reflect the firm’s ongoing commitment to providing the highest standards of service and achieving client satisfaction, even in the most complex legal matters. We extend our sincere thanks to our clients for their ongoing support and positive feedback, which has undoubtedly played a key role in this recognition of our firm as a premier provider of strategic legal solutions. For more information, please contact your usual contact at Elias Neocleous & Co LLC.  

We are excited to share that Elias Neocleous & Co LLC (ENC) has once again earned a Tier 1 Ranking in three distinguished categories, Tax, Tax Controversy and Transfer Pricing in ITR World Tax Rankings 2025, a leading global guide to top-tier tax firms. Significantly, ENC continues to be the sole firm among Cyprus’ law firms and Big Four accounting firms to achieve recognition across all three categories. In addition, Elias Neocleous, ENC Managing Partner, and Kyriacos Xenophontos, Partner, have received Highly Regarded recognition, while Senior Associate Elena Christodoulou, Associate Alexis Christodoulou, and Legal Consultant Fabian Cabeza have been awarded Rising Stars in Cyprus status, reflecting the firm’s dedication to nurturing top talent and maintaining excellence in legal and tax services across all levels. ITR World Tax is a distinguished industry publication, providing rankings and profiles of the most effective tax practitioners worldwide, covering 155 jurisdictions located on every continent. The rankings also include law firms, consultancies, and advisory groups in which many tax practitioners work, to ensure the broadest reach of any guide covering the global tax market. As part of its independent analysis, ITR World Tax secured feedback from more than 29k clients and 5,3k practitioners from countries across the globe. ITR World Tax’s recognition emphasises the remarkable skill and dedication of ENC’s Tax Planning and Advanced Business Structuring team in resolving complex tax and legal matters, and in setting new benchmarks within their domain. The ITR World Tax Rankings 2025 may be viewed here.