CPM

Fraudulent emails – Identify and discard

By our IT department. Based on Hong J. (Hong, 2012) Phishing emails are a type of targeted email attack where social engineers lure the recipient into performing specific actions such as clicking on a malicious link, opening a malicious attachment, or visiting a web page and entering their personal information. Furthermore, Singer PW and Friedman A (Singer & Friedman, 2014) mentions that Phishing attacks seek to trick recipients into believing that an email is legitimate, in order to solicit sensitive information (e.g., usernames, passwords, and credit card numbers) or install malware. As a result, phishing is a fundamental component of many cyber-attacks and is often used as a first step in advanced persistent threats. Below you can find instructions on how someone can identify and deal with suspicious emails: Upon the receipt of any email ask yourselves these two questions: “Do I know the sender?” “Am I expecting such an email from this person?” If the answer to both questions is no, delete the email immediately. Do not give your email to users or organizations you do not know or trust. Do not provide personal or sensitive information by email. Look for inconsistencies in links, email addresses and domains. Phishing emails often have email addresses that are different than the name on the email account. They may also use domain names that appear to be slightly off in some way. Users can hover over a link or email address and check the address before clicking or replying. Block and delete emails from strangers asking for personal information or promotional emails that are not of interest to you. If a message from a well-known company is formatted badly, has obvious misspellings, or is unrelated to you, this is a red flag. Call or compose a new email to the sender, asking if they have sent such an email. Be aware of requests with high urgency requiring quick action or requesting personal and/or financial information. If you are ever in doubt, double check such requests with the sender either by phone or by composing a new message - never reply to the original message. Do not open email attachments unless you are completely sure of the sender’s identity, especially if you did not expect such emails. Be careful when you are using a tablet or mobile device. Attempting to detect phishing emails from such devices is getting more challenging. Cybercriminals rely on the fact that users are in a hurry or busy and combined with the fact that spam emails appear to be legitimate maximizes the risk of falling victims. References: Hong, J. (2012). The state of phishing attacks. Communications of the ACM, Volume 55, Issue 1, 74-81. Singer, P., & Friedman, A. (2014). Cybersecurity and Cyberwar: What Everyone Needs to Know. Oxford University Press; Illustrated edition.

Chief Scientist highlights Cyprus' role as technology hub in New Delhi

(Source: CNA 11/09/2024) The Central Bank of Cyprus (CBC) has published detailed interest rate data for deposits and loans for each credit institution, noting that it will publish on a monthly basis, starting from July 2024, detailed weighted average interest rate data on the basis of information sent to it by credit institutions. More specifically, with regard to new time deposits up to 1 year from households, the CBC data reports an interest rate of 2% from Alpha Bank Cyprus, 2.01% from Ancoria Bank Ltd, 1.79% from Astrobank, 2.49% from the National Bank of Greece (Cyprus), 1.42% from Hellenic Bank, 2.46% from Eurobank Cyprus, 1.72% from Cyprus Development Bank, 2.17% from the Housing Finance Corporation, 2.18% from Societe Generale, 1.35% from the Bank of Cyprus and 2.27% from Jordan Ahli Bank PLC. As for new deposits of up to 1 year term from non-financial companies, the data reports an interest rate of 2.01% from Alpha Bank Cyprus, 2.25% from Ancoria Bank, 2.41% from Astrobank, 2.50% from National Bank of Greece (Cyprus), 2.62% from Hellenic Bank, 2.18% from Eurobank Cyprus, 2.67% from Cyprus Development Bank, 0.52% from Housing Finance Organisation, 2.56% from Societe Generale, 2.30% from the Bank of Cyprus and 1.90% from Jordan Ahli Bank. Regarding new loans for the purchase of housing for households, interest rates of 3,41% from Alpha Bank Cyprus, 4,08% from Ancoria Bank, 3,87% from Astrobank, 3,99% from Hellenic Bank, 4,79% from Eurobank Cyprus, 5,22% from Cyprus Development Bank, 2,96% from Housing Finance Corporation and 5,04% from the Bank of Cyprus are reported. For new loans up to €1 million to non-financial companies the interest rates are as follows: 1.88% from Alpha Bank Cyprus, 5.77% from Ancoria Bank , 4.90% from Hellenic Bank, 5.69% from Eurobank Cyprus, 5.50% from Cyprus Development Bank, 7.38% from Societe Generale and 5.72% from the Bank of Cyprus. For new loans over €1 million to non-financial companies, the interest rates are as follows: 5.14% from Ancoria Bank , 5.75% from the National Bank of Greece (Cyprus), 5.26% from the Hellenic Bank, 4.72% from Eurobank Cyprus, 7.07% from the Cyprus Development Bank, 7.38% and 6.66% from the Bank of Cyprus. The interest rates for existing time deposits up to 2 years from households are 2.20% from Alpha Bank Cyprus, 2.66% from Ancoria Bank, 1.52% from Astrobank, 2.73% from National Bank of Greece (Cyprus), 0.42% from Hellenic Bank, 2,13% from Eurobank Cyprus, 1.98% from Cyprus Development Bank, 1.60% from Cyprus Housing Finance Corporation, 2.31% from Societe Generale, 0.81% from the Bank of Cyprus, 2.66% from the Arab Jordan Investment Bank, 2.44% from SBA, 2.35% from Jordan Ahli Bank and 2.42% from Jordan Kuwait Bank. For the existing time deposits up to 2 years from non-financial companies, the interest rates are as follows: 2.45% from Alpha Bank Cyprus, 2.17% from Ancoria Bank, 2.25% from Astrobank, 2.40% from National Bank of Greece (Cyprus), 1.65% from Hellenic Bank, 1.70% from Eurobank Cyprus, 2.43% from Cyprus Development Bank, 0.95% from the Housing Finance Corporation, 2.64% from Societe Generale, 2.05% from t he Bank of Cyprus, 2.62% from Arab Jordan Investment Bank, 2.50% from SBA, 1.90% from Jordan Ahli Bank and 2.22% from Jordan Kuwait Bank. For existing home purchase loans with a term of more than 5 years to households, the interest rates are 4.42% from Alpha Bank Cyprus, 4% from Ancoria Bank, 4.65% from Astrobank, 4.21% from National Bank of Greece (Cyprus), 4.33% from Hellenic Bank, 4.90% from Eurobank Cyprus, 4.43% from Cyprus Development Bank, 2.93% from the Housing Finance Corporation, 3.68% from Societe Generale and 5.18% from the Bank of Cyprus. Finally, for existing loans with a maturity of more than 5 years to non-financial companies, the interest rates are 5,73% from Alpha Bank Cyprus, 6,03% from Ancoria Bank, 6,50% from Astrobank, 5, 34% from National Bank of Greece (Cyprus), 4.85% from Hellenic Bank, 5.63% from Eurobank Cyprus, 6.65% from Cyprus Development Bank, 6.63% from Societe Generale, 6.08% from the Bank of Cyprus and 6.41% from SBA. It is noted that the publication of detailed interest rate data contributes to easier information for the public, providing households and businesses with direct access to more comprehensive information, adding that future publications may be enriched with additional relevant information. Households and businesses will continue to contact the credit institutions themselves for information on the interest rates offered, the press release concluded.

State aiming for a Single Supervisory Authority by the end of the year

(Source:InBusinessNews 02/09/2024) The Cabinet’s decision last February for the creation of a Single Supervisory Authority seems to be on the way to implementation, something that will set a new foundation for the supervision of professional services in Cyprus. The authority is also anticipated to act as a catalyst to avoid the phenomena of the past that damaged the sector’s reputation in the country and tarnished Cyprus’ name abroad. It is recalled that the establishment of a Single Supervisory Authority was announced by the President of the Republic Nikos Christodoulides in the wake and in the shadow of the most recent publications - about a year ago - that targeted Cyprus and dealt a critical blow to its credibility as an international service center. Despite the objections and disagreements expressed by affected professional sectors and mainly by Cyprus Bar Association, the Government's effort is to have the Single Supervisory Authority established and operating within 2024, a goal that is considered to be achievable. According to information gathered by InBusinessNews, the drafting process of the bill is currently underway, with the Ministry of Finance having even requested the contribution of external partners. Based on the same information, the objections and concerns of the interested and involved bodies have been taken into account for the drafting of the bill, while the process is estimated to be completed around the end of October. As a competent source pointed out to InBusinessNews, "The bill, after it is drawn up, will go through the entire process that must be followed before being submitted to the Cabinet for approval and then to the House of Representatives for voting." That is, the source explained, "first it will go to the Law Office of the Republic for a legal technical check and then it will be put to a public consultation for comments, observations and/or corrections from the involved bodies, then it will take its final form and go to the Ministry and to the Parliament for approval." According to the same source, a meeting has already been held with the involved agencies, during which opinions were exchanged and their opinions recorded. It is noted that, if the bill is ready at the end of October and is put to public consultation, it is estimated that, if everything goes well and there are no new reactions, it will be brought to the Cabinet before the end of the year and then submitted to Parliament for a vote. The reactions It is recalled that strong reactions and concerns have been recorded on the Single Supervisory Authority, mainly from the Cyprus Bar Association, which spoke, among other things, of a "complete lack of seriousness." In its announcement after a meeting that took place at the end of March between the Ministry of Finance and the involved bodies, the Cyprus Bar Association emphasised that "through the statements and clarifications requested from all those present, it emerged that, in addition to the legal issues raised, during the processing of the proposal to the Cabinet to take this decision, important issues and factors were not evaluated by the Ministry of Finance and were not raised before the Cabinet, as a result of which it emerged that the decision faces serious weaknesses in terms of its implementation". Also, the Association warned that any implementation of the decision would constitute "another act of undermining the rule of law, as was done in several other cases with a recent example that has seen the light of day regarding the issue of safeguarding journalistic confidentiality and relevant positions of the Republic of Cyprus." President determined to confront the naysayers It is noted that in the wake of the intense reactions, the President of the Republic, Nikos Christodoulides, had expressed his readiness to clash with all those who are reacting against the establishment of a Single Supervisory Authority. In particular, and answering a related question during a cross-channel conference, he emphasised that "I decided to proceed, we have already worked out a specific bill, I already know the reactions and I am ready, if necessary, to clash, so as to preserve the name, credibility and reputation of our country." "No one is above the reputation of our country," he explained further, emphasising that "If they consider the long term, it is in the interest of those who are reacting for the Single Supervisory Authority to be set up." The Cabinet's decision It is worth mentioning that the decision to establish a Single Supervisory Authority was taken by the Cabinet on 27 February, with the Minister of Finance, Makis Keravnos, stating that with the approval of the authority, the supervision of administrative service providers is strengthened and upgraded with the assignment of jurisdiction to the Cyprus Securities and Exchange Commission, which in joint audits with the relevant supervisors, namely the Cyprus Bar Association and The Institute of Certified Public Accountants of Cyprus, will supervise these companies. According to the minister, within the framework of this supervisory authority and with the Cabinet’s decision, the governance of companies providing administrative services is strengthened by defining the qualifications of the people who will provide these services as well as the maximum number of companies they will serve, as is also the case in other EU countries. "With this decision, a unified and uniform but also immediate and preventive reaction is ensured in cases where there is negative information or developments that threaten the reputation and image of the Republic," he stressed.

Invest Cyprus: EIB decision to open office in Nicosia “a significant milestone for Cyprus”

(Source:CBNNews 24/07/2024) Invest Cyprus has welcomed the European Investment Bank Group (EIB Group)'s decision to open offices in Nicosia, describing it as “a significant milestone for Cyprus”. “This development marks a significant milestone for Cyprus, integrating Nicosia into the EIB Group's network of external offices across the European Union and the world,” Invest Cyprus said on its LinkedIn page. It is worth noting that Cyprus consistently ranks among the top beneficiaries of EIB Group financing relative to its size. As such, Invest Cyprus said the EIB's presence in Cyprus is a testament to the country’s success in attracting investments, building infrastructure that supports entrepreneurship and innovation within the EU, and ultimately boosting economic growth. “The new EIB offices will provide on-the-ground advisory and technical expertise, facilitating engagement between the EIB and local stakeholders, businesses, and the public sector,” Invest Cyprus concluded. EIB Head Nadia Calvino will inaugurate the Bank’s offices in Cyprus in the Autumn, Finance Minister Makis Keravnos has told the press, following the meeting of the Cabinet at the Presidential Palace.

Alert , 2022 Employment Tax Incentives-New income tax exemptions for first employment in Cyprus

On 14 July 2022, the House of Representatives voted amendments to Articles 8(21) and 8(23) of the Income Tax Law (ITL) related to the income tax exemptions granted to employees who take up first employment in Cyprus. The amended provisions of the Law have been published in the Government Gazette on 26 July 2022. These amendments form part of a wider strategy of the Cyprus Government for attracting both international investments and diversified talent. Moreover, such amendments complement the recent changes in the migration rules which simplify and expedite the relocation of staff and their families from EU and non-EU countries. The new 50% exemption (Article 8(23A)) The provisions of the new Article 8(23A) of the ITL apply as from 1 January 2022 for individuals who take up first employment in Cyprus commencing on or after 1 January 2022 provided that the following conditions are satisfied: • The individuals were not tax resident of Cyprus for a period of at least 10 consecutive years prior to the commencement of their employment in Cyprus; and • Their annual remuneration from exercising their employment in Cyprus exceeds the threshold of €55.000. The exemption is granted in any tax year where the €55.000 threshold is satisfied. The exemption can also be granted (subject to special rules) in the first and final tax year as well as in cases where the annual remuneration fluctuates below the annual threshold of €55.000. The exemption is available once in a lifetime for a maximum period of 17 years starting from the tax year of taking up first employment in Cyprus. It should be noted that this exemption does not require the individuals to become Cyprus tax residents. Moreover, individuals claiming this exemption cannot also claim the existing 50% exemption (Article 8(23)), the existing 20% exemption (Article 8(21)) or the new 20% exemption (Article 8(21A)). Transitional provisions Moreover, individuals who took up employment in Cyprus prior to January 2022, may also be eligible to transition themselves and claim an exemption as per the new Article 8(23A) as shown below: Year of commencement of 1st employment Eligible persons Prior to 2022 Individuals who benefited from the existing 50% exemption (Article 8(23)) and continuously exercised their employment in Cyprus up to and including 2021 Between 2016 and 2021 Individuals whose annual remuneration from first employment in Cyprus exceeded €55.000 Individuals whose annual remuneration from first employment in Cyprus did not exceed €55.000 and within 6 months, starting from 26th July 2022, their remuneration will exceed the €55.000 threshold Individuals currently benefiting under the existing 50% exemption (Article 8(23)) and do not fall within any of the cases mentioned above will continue to benefit from the existing 50% exemption up until the completion of the 10 year period. It should be noted that the provisions of Article 8(23) apply for individuals taking up first employment in Cyprus up until 26th July 2022. The new 20% exemption (Article 8(21A)) Under the provisions of Article8 (21A), which are applicable as from 26th July 2022, individuals who take up first employment in Cyprus after 26th July 2022 are eligible to claim a 20% exemption on their annual remuneration (capped at €8.550) for a maximum period of 7 years. Individuals claiming the new 20% exemption should have been non-Cyprus tax residents for at least 3 consecutive years prior to the commencement of first employment in Cyprus and must have been employed outside of Cyprus by a non- resident employer. The exemption can be claimed in the tax year following the tax year of commencement of first employment in Cyprus (i.e. if first employment commences in 2022, the 20% exemption is granted from tax year 2023 up until tax year 2029). Individuals already benefiting from the 50% exemption will not be eligible to additionally claim the 20% exemption. Individuals who are currently eligible under the existing 20% exemption (Article 8(21)), and who are not eligible for the transitional provisions (mentioned above) will continue to benefit from the existing 20% exemption up until the completion of the 10 year period.

Alert 2, 2021 UBO Register of Trusts and of similar legal arrangements

Cyprus implements Beneficial Ownership Register for trusts and similar legal arrangements Further to the introduction of the register of Beneficial Owners (BOs) for companies, on the 18 June 2021 Cyprus has introduced a similar register for BOs of Trusts and other similar legal arrangements (the “Trust Register”) to be kept electronically by the Cyprus Securities and Exchanges Commission (CySEC) which is the supervisory authority for the implementation and operation of the Trust Register. The Trust Register was implemented through CySEC’s Directive for the prevention and suppression of money laundering and terrorist financing (register of beneficial owners of express trusts and similar legal arrangements) (the “Directive”) which provides information and guidance in relation to the registration of express trusts and similar legal arrangements in the Trust Register. The Directive applies for express trusts which are defined as trusts created expressly by a settlor at his own will. Trusts arising by operation of law as well as trusts for which the settlor shows no clear intention for their creation are not considered to be express trusts. Registration of an express trust should take place in cases where: the trustee is located or residing in the Republic of Cyprus; or the trustee, which is located or residing outside EU, establishes a business relationship or acquires immovable property in Cyprus on behalf of the express trust. Information to be submitted The following information must be submitted for registration: For the trusts and other similar legal arrangements Name of the trust Country and date of establishment Applicable law Termination date (if applicable) Country in which the trustee is established or resides and details of his address In case the trustee resides outside the EU and establishes a business relationship on behalf of the trust in Cyprus, the date of commencement of the business relationship, the name of the person with whom such relationship is established together with the document which governs such a relationship In case the trustee resides outside the EU and acquires immovable property on behalf of the “Stated” (expressed) trust in Cyprus, the registration number and address of the immovable property together with the title deed of the property Any other information and/or supporting documentation requested by CySEC for identification purposes BO/s (trustee, settlor, protector, beneficiaries) Name, surname and father’s name Date and place of birth Nationality/ies Residential Address Type, number and country of issuance of identification document Date of death (where applicable) Date on which the person became beneficial owner The nature and extent of the rights which are directly or indirectly held by the UBO The role of the UBO in the trust or in a similar legal arrangement Any other information and/or supporting documentation requested by CySEC for identification purposes In case the Trust has one or more classes of beneficiaries, the following information should also be provided: Description of the class of beneficiaries and its members the nature and extent of the rights of each class of beneficiaries Deadlines and Charges A six-month period has been granted for existing trusts to be registered. For new trusts falling under either of the two cases, as well as for any changes in the information submitted to the Trust Register for trusts already registered, there is a time limit of 15 days from the date of appointment of the trustee or the date on which such changes were effected. CySEC has set a scale of charges for registration and renewal of registration of trusts as well as for retrieving information. Eligible persons/authorities for having access in the UBO trust register Eligible for having access without any charge to the information entered in the Trust Register will be the trustees and or any other equivalent person who has entered such information thereinto, as well as other competent authorities like the Unit for Combating Money Laundering and Terrorist Financing, the police, the Customs’ Department, and the Tax Department. Furthermore, any person or organization who may demonstrate a legitimate interest and who provides sufficient evidence in this respect , may have access to such information under a fee if the relevant application submitted to CySEC is approved. The procedure is set as follows: CySEC acknowledges with the trustees and or the equivalent person of the receipt of an application from a certain person/authority and the fact that they have initially established that indeed such a person or authority has a legitimate interest. If the trustees do not file written representations within 10 days as of the date it has received CySEC’s acknowledgment, then such a person and or authority will be given access to the information kept in the Trust Register.

Alert 2, 2021 UBO Register Of Trusts And Of Similar Legal Arrangements

Cyprus implements Beneficial Ownership Register for trusts and similar legal arrangements Further to the introduction of the register of Beneficial Owners (BOs) for companies, on the 18 June 2021 Cyprus has introduced a similar register for BOs of Trusts and other similar legal arrangements (the “Trust Register”) to be kept electronically by the Cyprus Securities and Exchanges Commission (CySEC) which is the supervisory authority for the implementation and operation of the Trust Register. The Trust Register was implemented through CySEC’s Directive for the prevention and suppression of money laundering and terrorist financing (register of beneficial owners of express trusts and similar legal arrangements) (the “Directive”) which provides information and guidance in relation to the registration of express trusts and similar legal arrangements in the Trust Register. The Directive applies for express trusts which are defined as trusts created expressly by a settlor at his own will. Trusts arising by operation of law as well as trusts for which the settlor shows no clear intention for their creation are not considered to be express trusts. Registration of an express trust should take place in cases where: The trustee is located or residing in the Republic of Cyprus; The trustee, which is located or residing outside EU, establishes a business relationship or acquires immovable property in Cyprus on behalf of the express trust. Information to be submitted The following information must be submitted for registration: For the trusts and other similar legal arrangements Name, surname and father’s name Date and place of birth Nationality/ies Residential Address Type, number and country of issuance of identification document

Alert 1, 2021 Cyprus law to implement Mandatory Disclosure Rules enters into force

On 31 March 2021, the law (Ν. 41(Ι)/2021, the Law) amending the Law on Administrative Cooperation in the field of Taxation (Law N. 205(I)/2012) was published in the Official Gazette of the Cyprus Republic and entered into force. The Law transposed the European Union (EU) Directive (referred to as DAC6 or the Directive) into domestic law. The Law entered into effect as of 1 January 2021, however, it will have a retrospective effect for reportable cross-border arrangements concluded on or after 25 June 2018 provided that one of the prerequisite triggering events is met. The final Cypriot Mandatory Disclosure Rules (MDR) legislation is broadly aligned with the requirements of the Directive with minor differences. Further to the Law, guidance notes will be issued by the Cypriot Tax Department (CTD) to provide clarity over the interpretation of key terms of the Law. The Directive requires intermediaries (including EU-based tax consultants, banks, asset managers, corporate administrative service providers, insurance companies and lawyers) and in some situations, taxpayers, to report certain cross-border arrangements (reportable arrangements) to the relevant EU member state tax authority. This disclosure regime applies to all taxes except value added tax (VAT), customs duties, excise duties and compulsory social security contributions. Cross-border arrangements will be reportable if they contain certain features (known as hallmarks). Under the Directive, an arrangement is reportable if: The arrangement meets the definition of a cross-border arrangement; and The arrangement meets at least one of the hallmarks A-E specified in Annex IV of the Directive and the main benefit test (MBT), where applicable. Administrative fines for non-compliance Breach Penalty (one-off administrative fine per entity and arrangement) Failure to report a Reportable Cross Border Arrangement (RCBA) €10.000-20.000 Delay in reporting an RCBA Up to 90 calendar days: €1.000-5.000 More than 90 calendar days: €5.000-20.000 Filing inaccurate or incomplete or misleading report of an RCBA €1.000-10.000 Failure to notify other intermediaries or the relevant taxpayer by the intermediary regarding the exemption due to Legal Professional Privilege (LPP) €10.000-20.000 Delay in the notification of other intermediaries or the relevant taxpayer by the intermediary regarding the exemption due to LPP Up to 90 calendar days: €1.000-5.000 More than 90 calendar days: €5.000-20.000 Failure to provide the Cypriot Tax Department with information or documents for an arrangement within 14 days from the date of reception of written notice €1.000-10.000 Failure to pay the administrative fines imposed/Continuance of the relevant breach Increase of imposed fine up to €20.000 As implied by the provisions of the Law, penalties will also apply for intermediaries/relevant taxpayers who have breached their reporting or notification obligations, as prescribed in the Law, for the transitional period. On 4 June 2021, the CTD announced the non-application of administrative penalties for all filings effected by 30 September 2021 in respect of RCBAs made or to be made from 25 June 2018 up until 31 August 2021. As from 1 September 2021, RCBAs should be reported within 30 days from the rom the relevant triggering event. Remarks Cyprus intermediaries and taxpayers with cross border arrangements should review their existing procedures to continuously monitor their disclosure obligations under the DAC 6, ensuring compliance and minimising the risk of monetary fines.