CYPRUS Law and Practice Contributed by: Kyriacos Scordis, Sofia Tryfonos Avraam and Anna Borovska, Scordis, Papapetrou & Co LLC
• the Unit for Combating Money Laundering; • the Cyprus Police; • the Attorney General’s office; • the Ministry of Justice and Public Order; • the Central Bank of Cyprus; and • all other supervisory authorities of the finan - cial sector. 3. Recent Legal Developments 3.1 Significant Court Decisions or Legal Developments Even though there have not been any significant changes or legal developments which have a direct impact on M&A transactions, the follow - ing legal developments in Cyprus over the last few years may have an indirect effect on such transactions. • Public access to the register of ultimate beneficial owners (UBOs) was reinstated in 2023 (after its suspension as a result of the decision of the Court of Justice of the Euro - pean Union (CJEU) in joined cases C-37/20 and C-601/20 on 22 November 2022). In November 2023, the Registrar of Companies announced the implementation of the final version of the electronic system of the UBO registry, obliging all Cyprus-registered entities to comply in accordance with the Preven - tion and Suppression of Money Laundering and Terrorist Financing Law of 2021. Pursu - ant to Directive KDP 423/2024 issued by the Department of Registrar of Companies and Intellectual Property, a further extension for the submission of the UBO registry was granted until 31 January 2025, with 31 March 2025 being the deadline for such information to be confirmed. • With effect as of 2024, Cyprus has abolished the EUR350 annual company levy. This signif -
icant move will enhance Cyprus’s appeal as a leading international business destination by lowering operational costs for businesses and fostering economic development. • Law 13(I)/2022 referred to in 2.4 Antitrust Regulations (concerning competition law matters). • The Markets in Financial Instruments Directive No II (MiFID II), which was transposed into Cyprus national law in 2018 (introducing new corporate governance requirements in the domestic legislation and regulating trading in a manner leading to greater transparency). • The Markets in Financial Instruments Regula - tion (MiFIR), which was also transposed into Cyprus national law in 2018 (aligned with MiFID II by introducing obligatory transac - tion reporting requirements for monitoring and market abuse purposes, with the overall aim of strengthening investor protection and ensuring safer and fairer markets). 3.2 Significant Changes to Takeover Law There are no significant changes in legislation or practices in the M&A sector. This area of law has been aligned with EU directives and offers a coherent statutory framework to regulate and facilitate M&A activity. 4. Stakebuilding 4.1 Principal Stakebuilding Strategies Most M&A activity in Cyprus is in the form of direct offers/bids (whether by existing share - holders or third parties) or purchase of dis - tressed assets. Stakebuilding exercises are rare, especially in view of the small size of the Cypriot economy and the relevant market.
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