The Council of Ministers in Cyprus announced in May, new amendments to the Cyprus Investment scheme, including changes to name, code of conduct, capping of applications and applying enhanced due diligence.
The Committee of Supervision and Control was established, with the main responsibility to create the Registry of Service Providers (Registry) of the Cyprus Investment Programme and to observe the implementation of the Code of Conduct by the service providers.
The Committee of Supervision and Control for the Cyprus Investment Programme, consists of representatives from the Ministry of Finance, the Ministry of Interior and Invest Cyprus was established by the Council of Ministers Decision, to improve the Cyprus Investment Programme.
As of July 31 2018, any applications for the Cyprus Investment Programme may be submitted on behalf of the applicants ONLY by natural or legal persons registered with the Registry of Service Providers (Registry) of the Cyprus Investment Programme.
The Registry of service providers will be publicly available on July 31 and regularly updated on http://cipregistry.mof.gov.cy/en/
The new amendments to Cyprus investment scheme prohibits any advertising or use of cyprus passport by service providers. Publishing the names of cypriot passport holders publicly is also considered criminal offence.
Due diligence by service providers
- Members of the Registry shall apply the following due diligence practices in relation to client acceptance, when examining the possibility of collaboration:
- Recording and verifying information that fully and accurately identifies the potential client.
Undertaking, within the framework of the law, checks on the client, of its professional activities as well as its surroundings (including possible publications in the press or online). - Verifying the origin and legality of the investment funds of the client.
- Providing a report of the findings of the due diligence review (due diligence report) from internationally recognised electronic databases, for the use of which a fee is payable (e.g. World Check, LexisNexis Diligence, Regulatory DataCorp Inc, etc). The report must be dated no later than thirty days from the date of its submission.
Members must ensure that they take all required steps to secure the safety of their clients’ funds, as follows:
- Maintaining client investment funds in separate bank accounts.
- Reporting to clients as to the movement of their funds.
- Reporting to clients on all expenses made and issuing relevant invoices with all necessary information, as provided by applicable law.
- Returning to clients any possible excess of funds including interest, upon completion of the collaboration.
Members apply clear and distinct procedures to manage all clients’ information with due confidentiality and ensure that the information is made available only in cases where the members are obliged to disclose information through court or other legal proceedings, notifying their clients in advance.
New Advertising Guidelines
The Cyprus Committee has also published new guidelines for the promotion and advertising of Cyprus citizenship scheme. Please see here
