**CySEC Tightens Framework for Cyprus Trust Ownership Records**
The Cyprus Securities and Exchange Commission (CySEC) has introduced a new regulatory directive aimed at enhancing the anti-money laundering framework related to the registry of ultimate owners for express trusts and similar legal arrangements. This update, designated as Regulatory Administrative Act 243/2026, was enacted by the financial watchdog's board to improve compliance and access rules concerning the national beneficial ownership database.
The regulatory changes exercise specific statutory powers granted to CySEC under section 61C of the Prevention and Suppression of Money Laundering and Terrorist Financing Law. This law has seen multiple legislative updates from 2007 to 2025, reflecting the evolving landscape of financial regulation in Cyprus. The latest directive modifies the framework established between 2021 and 2025, focusing on how beneficial owners—the ultimate human controllers of financial structures—are recorded and accessed.
One of the key changes in the new directive is the revision of the legal definition of an authorized user. This adjustment includes updated cross-references within section 61C of the primary anti-money laundering legislation, which determines which entities are permitted to view data from the register. By refining these definitions, CySEC aims to ensure that only appropriate parties have access to sensitive ownership information.
Additionally, the regulatory update eliminates sub-paragraph 5 of paragraph 10 from the main directive, which previously imposed administrative requirements related to the filing of trust ownership details. This removal is expected to streamline the process for service providers and trustees, making it easier to comply with the updated regulations.
The directive also amends paragraph 11 to adjust cross-referencing provisions, effectively removing references to paragraph 14 of the rules. The complete deletion of paragraph 14 simplifies the operational guidelines that must be followed when submitting information regarding express trusts. These trusts are formal legal arrangements created by a settlor to manage assets for designated beneficiaries, and they are required to declare their true owners to aid in the fight against money laundering and financial crime.
The new regulatory directive took effect immediately upon its official publication in the Official Gazette of the Republic, signaling CySEC's commitment to enhancing transparency and accountability in financial transactions involving trusts. By tightening the regulations surrounding trust ownership records, CySEC aims to bolster efforts to combat illicit financial activities and ensure that Cyprus remains compliant with international standards in anti-money laundering practices.
As financial regulations continue to evolve, stakeholders in Cyprus's financial sector—including trustees, service providers, and legal professionals—will need to adapt to these new requirements. The changes underscore the importance of maintaining accurate and accessible records of beneficial ownership, which is critical in preventing the misuse of trusts for illicit purposes.
Overall, the introduction of Regulatory Administrative Act 243/2026 marks a significant step in strengthening Cyprus's regulatory framework, aligning it more closely with global best practices in transparency and anti-money laundering efforts.