Title: Cyprus Establishes Unified Supervisory Authority for Administrative Service Providers
In a significant move to bolster the integrity of its financial services sector, the Cabinet of the Republic of Cyprus has given the green light for the creation of a unified supervisory authority aimed at overseeing administrative service providers. Finance Minister Makis Keravnos announced the decision on Tuesday, marking a pivotal step in safeguarding the nation’s reputation and enhancing the quality of services offered.
Minister Keravnos emphasized that this initiative represents a foundational stone in establishing stringent supervisory control over the sector. The new authority will be under the purview of the Cyprus Securities and Exchange Commission, which will work in tandem with the Institute of Certified Public Accountants of Cyprus (ICPAC) and the Cyprus Bar Association to ensure rigorous oversight.
The collaboration is set to include joint inspections with relevant supervisors, particularly in instances where there may be concerns that could tarnish the Republic’s image. Keravnos highlighted that these measures are part of a broader strategy to fortify governance within administrative service companies by clearly defining who is eligible to provide these services and capping the number of companies an individual can serve—a practice in line with other European Union member states.
The Finance Minister also addressed the proactive nature of the authority, noting that it will actively investigate sanctions violations and implement preventative measures. Consultations with stakeholders are planned to fine-tune the mechanisms and criteria that will guide the authority’s operations. Moreover, a regime of fines and other punitive actions will be established to deter and penalize any breaches of sanctions.
This decision underscores Cyprus’s commitment to ensuring a unified, uniform, and swift response to any negative developments that could potentially harm the country’s standing. By reinforcing oversight and introducing preventive measures, Cyprus aims to maintain its competitive edge as a reputable international business hub.
