Will Transparency Override Privacy? Introducing The 'Public Register'

Under the current legal framework in Cyprus, shares can be held through nominees, which can be either individuals or entities, in trust for the beneficial owner of the shares without public disclosure of the ultimate owner's identity. Therefore, the name listed on the certificate of shareholders of an entity can merely state the nominee and not give a complete picture of the shareholding structure of the entity.

In combating money laundering, the financing of terrorist activity and tax evasion the 4th AML Directive has obliged all EU member states to introduce the public register by 20th January 2020. In the meantime, Cyprus authorities have been trying to increase transparency by introducing and proposing reforms of the Cyprus legal framework in implementing the 5th AML Directive, which builds on the steps introduced by the 4th AML Directive.