Cyprus Finance Minister Affirms Commitment to Boost Administrative Services Sector

Finance Minister Makis Keravnos has reiterated the government's strong commitment to bolstering the administrative services sector in Cyprus. His comments were made during his address at the 11th Annual General Assembly of the Cyprus Fiduciary Association (CYFA), a notable representative body of regulated Administrative Service Providers in Cyprus.

During this significant event, several prominent figures delivered speeches, including Deputy Minister for Research, Innovation, and Digital Policy, Philippos Hadjizacharias, CYFA president Christophoros Koutouroussis, George Theocharides, president of the Cyprus Securities and Exchange Commission (CySEC), and Irene Mylona-Chrysostomou, Registrar of Companies and Intellectual Property.

Minister Keravnos commended CYFA for its dedication to fostering sustainable international activities within the Cypriot economy while maintaining the highest professional standards and business integrity. He underscored the invaluable asset that CYFA represents for society, saying, "The journey of CYFA since its establishment in 2011 reflects the collective vision and commitment of its members, making it one of the most respected and recognizable organizations in the country."

In today's ever-evolving business environment, the Finance Minister acknowledged the rapid growth of Administrative Service Providers (ASPs) who offer services to legal entities in Cyprus and beyond. These services encompass a wide range of functions, including administrative, company secretary tasks, and various support services. Keravnos emphasized their importance, stating, "Administrative Service Providers have become indispensable partners, simplifying compliance with regulations, reducing administrative burdens, and enabling businesses to focus on the ever-evolving demands of the global business world."

Furthermore, the Cypriot Finance Minister stressed the importance of reliable administrative services for companies and other organizations in the context of an international business hub. He added, "I am particularly pleased that CYFA has the necessary infrastructure, expertise, and capability to provide training and guidance to its members and ensure their continuous presence in the global business arena while upholding the collective prosperity of this significant sector."

Keravnos also highlighted the government's unwavering commitment to improving all aspects of the sector, including enhancing the quality of service providers and establishing a robust regulatory framework. He noted the government's recent decision to conduct a comprehensive study aimed at strengthening governance and oversight of Administrative Service Providers.

Deputy Minister for Research, Innovation, and Digital Policy, Philippos Hadjizacharias, emphasized the role played by CYFA in supporting the vital investment sector in Cyprus. He praised CYFA for bringing together businesses and individuals involved in investments, enabling them to advocate for their interests with various government bodies and secure their rights. Hadjizacharias stressed the importance of efficient services for individuals interested in investing in Cyprus, as it contributes to overall development, reputation, and the attraction of new investors.

Meanwhile, in his address, CYFA president Koutouroussis underscored the need for a more dynamic and robust administrative services industry in Cyprus, built on trust and the country's reputation. He emphasized the importance of balancing compliance with business growth and recognized that excessive regulation could hinder business development. Koutouroussis noted that CYFA members should try to have a balanced approach and focus on attracting clients aligned with long-term goals and values, even if it means sacrificing short-term profitability.

He also stressed that Cyprus's small size could be turned into an advantage, promoting a flexible and adaptive system to navigate the complex global landscape. Koutourousis addressed key factors for achieving these objectives, including tax reforms and digitalization. He also urged the need to attract larger clients and international banks, rejecting the mentality of small scale and leveraging Cyprus's unique advantages in the financial sector.

In his speech, George Theocharides, President of the Cyprus Securities and Exchange Commission (CySEC), discussed various aspects related to sanctions, both at the EU and US levels, emphasizing the importance of aligning with the Anti-Money Laundering Directive. He noted that CySEC actively provides guidance and support to the supervised entities, offering extensive information on its website, covering legal frameworks, sanctions guidance, and application requirements. He also mentioned that CySEC is currently supervising 135 Administrative Services Providers for Anti-Money Laundering compliance, with an additional 10 applications under review.

The speeches at the CYFA event underscored the significance of the administrative services sector in Cyprus and the government's commitment to its growth and development.

By fLEXI tEAM