On the 2nd of November 2018, the Central Bank of Cyprus (the “CBC”) issued a circular with the purpose of clarifying the definition of “Shell Companies” and how the service providers and banks should classify them.
The revised definition aims to offer clarity and certainty as to the legal requirements underpinning the shell companies.
As per CBC circular, the term “shell company/entity” refers to a limited liability Company or any other legal entity that:
Has no physical presence or operations; “physical presence” includes employees, office space, etc. The presence of a third person providing merely nominee services including company secretary duti...
The European Union Fourth Anti-Money Laundering Directive (the “New AML Directive”), enacted on 25 June 2016 which was due to be implemented on 26 June 2017, replaces the previous Third Directive. It is yet to be enacted into local legislation yet but when the national law is transposed its effects will be wide reaching. Below we examine the main provisions and its potential effects for certain sectors:-
The main provisions of the New AML Directive are the following:
Extension of the scope of anti-money laundering legislation requirements by reducing the threshold for cash transactions from €15.000 to €10.000