Cyprus must compile a register of ultimate beneficial owners of companies (UBOs) registered in the country, as required by the European anti-money laundering regulator. Data collection on such companies will start as early as the second half of March, Reuters reports.

Supporters of tougher anti-money laundering laws believe the drafting of a UBO will be a watershed moment for Cyprus. The island has for years attracted those who have hidden their wealth behind shell companies, eager to take advantage of low tax rates. Many of these businesses are believed to be linked to Russia.

As clarified by the Cypriot Ministry of Energy, Industry and Trade, the companies will have six months to gather all the data for their entry in the register. Experts assume that a number of companies would prefer to give out the names of the actual owners to a change of jurisdiction.