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Cyprus/November 2013

The Ministry of Finance of Cyprus has recently published a circular with the latest updates regarding the enforcement of temporary restrictive measures on transactions.

Restrictive Measures on Transactions

 Cash withdrawals

– Shall not exceed daily EUR 300 per physical person,

– Shall not exceed daily EUR 500 per legal person.

Cheques

Cashing of cheques is prohibited.

Cashless payments or transfers of deposit/fund within Cyprus

– Up to EUR 15,000 per month per physical person are allowed,

– Up to EUR 75,000 per month per legal person are allowed,

– Allowed regardless of the amount if it relates to purchase of goods and/or services when not made to a person’s own account.

Cashless payments or transfers of deposit/fund abroad

 If it falls within the normal business activity and justifying documents are presented the below are allowed:

– Up to EUR 1,000,000 per transaction without the Committee’s approval,

– Above EUR 1,000,000 per transaction subject to Committee’s approval,

– Payment of salaries of employees,

– Living expenses up to EUR 5000 per quarter and/or tuition fees for a person studying abroad and being a relative of first degree,

– Up to EUR 5,000 per month per person regardless of the purpose.

Fixed term deposits

Prohibited to be terminated before maturity period unless funds used:

– To repay loan and/or overdraft and/or credit card within the same institution as long as the credit facility was provided before the entry into force of the restrictions, there are no sufficient amounts in a current account within the same credit institution and provided that in the case of overdraft and/or credit card the maximum repayment from the fixed deposit is not higher than the outstanding balance during the entry into force of the restrictive measures,

– To create one or more deposits of the same amount and for a period at least equal to the initial term;

– To transfer up to EUR 5,000 per month to a current account of the same bank for humanitarian reasons;

– To transfer to a current account of the same bank the exact amount needed for medical expenses with justifying documents and provided that there are no sufficient funds in a current account within the same bank;

– To transfer to a current account of the same bank for payment to the Republic with justifying documents through electronic transfer of issuance of bankers draft and provided that there are no sufficient funds in a current account within the same bank; and

– For payment of real estate acquisition in Cyprus as long as they are paid in a loan account of the seller within the same bank, the loan was granted before the restrictive measures came into force, justifying documents are presented and provided that there are no sufficient funds in a current account within the same bank.

On the maturity of fixed term deposit the higher amount of EUR 5,000 or 20% of the amount can be deposited in a current account or a new fixed term deposit. The remaining amount maturity shall be extended for a month.

Notice account:

Allowed to transfer EUR 300 per day per physical person within the same institution.

Exports:

Exports of any currency up to EUR 3,000 are allowed per physical person per trip.

Transfer of any currency notes to areas not controlled by the Republic:

Transfer of currency notes to any areas not controlled by the Republic is allowed:

– Up to EUR 300 per day per physical person having permanent residence in the Republic,

– Up to EUR 500 per day per physical person having permanent residence abroad.

New accounts:

Opening of new accounts for non-existing customers is prohibited unless: 

– It will be credited from funds received from abroad or;

– The approval of the committee is obtained or;

– It is a new fixed term deposit created with cash and the amount exceeds EUR 5000, it is for at least three months and the new fixed term deposit cannot be terminated before maturity period or;

– It relates to a new loan granted after the entry into force of the restrictive measures that it will be opened for servicing the loan and all deposits will be used for the servicing of the loan. Loan proceeds to be disbursed into a current account of the same bank.

 Exempted:

– Money transferred from abroad during or after the entry into force of the restrictive measures;

– Withdrawal of cash using bank cards by foreign banks relating to accounts abroad;

– Cashing of cheques issued on accounts held with foreign banks;

– Cash withdrawals from accounts of banks with the Central Bank;

– Payment and receipts of the Central Bank;

– Foreign diplomatic missions and UN missions;

– Payments via bank cards; and

– Transactions or payments approved by the Committee.

Important Note: New incoming fund transfers from outside Cyprus after 28 March 2013 are exempted from the restrictive measures and can be used without any restrictions.

Eurofast, Cyprus
info@eurofast.eu
www.eurofast.eu