Foundations In Cyprus: The Role Of Fiduciary Service Providers And Identification Protocols

E
Eurofast

Contributor

Eurofast is a regional business advisory organisation employing local advisers in over 21 cities in South East Europe, Middle East & the Baltics. The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services.
The financial surroundings in Cyprus have been a subject of intrigue, particularly concerning its association with foundations. Contrary to misconceptions, Cyprus is not inherently...
Cyprus Corporate/Commercial Law
To print this article, all you need is to be registered or login on Mondaq.com.

The financial surroundings in Cyprus have been a subject of intrigue, particularly concerning its association with foundations. Contrary to misconceptions, Cyprus is not inherently connected to foundations. However, the involvement of fiduciary service providers, especially those offering services related to foundation-associated companies, brings this entity into the Cyprus financial narrative. In this context, the connection between Cyprus and foundations becomes apparent, primarily through the fiduciary services rendered by professional entities. It is banks and regulatory authorities in Cyprus that mandate identification protocols to shed light on the beneficiaries, founders, council members, protectors, and auditors associated with these structures.

Identification Protocols in Cyprus

Central to the interaction between foundations and Cyprus are the identification protocols meticulously followed by financial institutions, especially banks, and regulatory bodies. These protocols consistently adhere to specific criteria aimed at ensuring compliance with regulatory standards.

The emphasis is notably placed on identifying key stakeholders, including beneficiaries, founders, council members, protectors (if appointed), and auditors (if engaged).

The stringent nature of these protocols aligns with the discreet nature often inherent in foundation structures.

Letter of Confirmation

One of the challenges posed by foundations is the discreet nature of beneficiaries and founders, often not explicitly mentioned in foundation articles. As part of the onboarding process, banks and regulatory authorities frequently require a letter of confirmation. This letter, typically signed by the foundation council and/or the founder, plays a crucial role in affirming the current beneficiaries, ensuring compliance with the 10%+ rule, and providing insights into the existing assets within the foundation.

Role of Fiduciary Service Providers

The connection between Cyprus and foundations is forged through the services offered by fiduciary service providers. These professional entities play an important role in facilitating the establishment, management, and compliance of foundation-related companies in Cyprus. It is through their expertise that foundations find a niche within the Cyprus financial ecosystem.

To sum it up, while Cyprus may not inherently be synonymous with foundations, the involvement of fiduciary service providers and the implementation of robust identification protocols by financial institutions create a symbiotic relationship. Handling with the complexities of foundation structures within the Cyprus jurisdiction involves understanding the role of these service providers and the protocols designed to ensure transparency and compliance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Foundations In Cyprus: The Role Of Fiduciary Service Providers And Identification Protocols

Cyprus Corporate/Commercial Law

Contributor

Eurofast is a regional business advisory organisation employing local advisers in over 21 cities in South East Europe, Middle East & the Baltics. The Organisation is uniquely positioned as one stop shop for investors and companies looking for professional services.
See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More