Cyprus defrosts deposits

28.03.2014

The government of Cyprus refused from restrictions about on cash withdrawal from bank accounts, including the permissions to withdraw funds from deposits before the expiration of their term. In spite of considerable derogation for movement of assets within the country, "normal economic activity" can still remove more than €5 thousand abroad.

The Ministry of Finance of Cyprus since Monday refused restrictions on cash withdrawal from accounts of the Cyprian banks which constituted earlier €300 for physical persons and €500 for legal persons, reported the ministry on Friday. It was announced that the double increase of a level of money transfers within the country, it isn’t necessary to confirm through documentation: to € 50,000 for physical persons and € 200,000.for the companies. New rules are going to be extended to deposits with fixed time period, which can be closed before the expiration of the fixed term.

Restrictions for banker's remittance became into force last year for preventing outflow of capital to border. It is possible to "normal business activity of the company" to transfer to foreign accounts to €1 million for transaction for implementation (payment of the imported equipment, goods, salary payment to foreign employees) on condition of documentary confirmation of the purpose of transaction. Without any reasons for the purpose of the translation it is allowed to remove € 5,000. per person in a month. Leaving Cyprus, with itself it is possible to take no more than €3,000..

Based on : http://www.mof.gov.cy/mof/mof.nsf/index_en/index_en?OpenDocument

Expert’s opinion

The business activity of reporting companies, registrars and banks became similar to the same, which was in 2012. Naturally, there are amendments and reinforcement in financial structure.

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)