Responsibility of New Officers/Partners in Case of Changes
The Department of Registrar of Companies and Intellectual Property (DRCIP) following its announcement titled "Announcement of the Registrar of Companies and Intellectual Property for the Beneficial Ownership Register" dated 14/03/2024, informs that in cases of changes in the officers/partners of a company/partnership, it is the responsibility of the new officers/partners of a company/partnership, prior to accepting their appointment, to conduct relevant research as to whether a company/partnership has declared its beneficial owners in the DRCIP's beneficial ownership system.
Implications for Failure to Comply
Failure to comply with the above requirement will result in the imposition of monetary penalties on the officers/partners who are appointed as of the date of submission of the beneficial ownership information.
Legal Formalities and Compliance
In a formal legal style, this announcement from the Department of Registrar of Companies and Intellectual Property (DRCIP) highlights the legal responsibilities and potential financial consequences for companies and partnerships regarding the declaration of their beneficial ownership information.
The DRCIP emphasizes that in the event of changes in the officers or partners of a company or partnership, it is the duty of the incoming officers or partners to thoroughly investigate whether the entity has duly declared its beneficial owners in the DRCIP's beneficial ownership register before accepting their appointment.
Failure to conduct such due diligence and ensure compliance with the beneficial ownership disclosure requirements may result in the imposition of monetary penalties on the officers or partners who are officially appointed at the time of submitting the beneficial ownership information.
This announcement serves as a formal notice to companies and partnerships, underscoring the importance of adhering to the legal obligations concerning the disclosure of beneficial ownership details. The DRCIP aims to promote transparency and accountability in corporate governance by enforcing these regulations through the imposition of financial penalties in cases of non-compliance.
Entities operating in the jurisdiction of the Republic of Cyprus are advised to meticulously review their internal processes and ensure that all necessary measures are taken to comply with the beneficial ownership reporting requirements, particularly during transitions in leadership or partnership structures.
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