Cyprus: Capital Control to Ease

By in

Cyprus: Capital Control to EaseThe Cyprus financial system is recovering faster despite continuous contraction of economy by 5.4% in 2013 and predicted contraction of 4.8% in 2014. It is partially due to a fact that the opening of bank accounts for offshore companies is becoming a real challenge in the traditional Banking Centers like Hong Kong and Switzerland where banks are refusing to open bank accounts for traditional tax haven companies, And partially due to successful implementation of the Troika Roadmap agreed in August 2013 on restructuring of the Cyprus banking system. In particular, major milestones like the approval of the Bank of Cyprus restructuring plan, recapitalization of the Hellenic Bank, etc. were successfully completed leading to an optimism of early Capital Control lifting. As an example, Iceland is still keeping the Capital Control on which was imposed in 2008 after collapse of three major banks. The last Decree easies restrictions of fixed term deposits and increase a cap for free transfer of funds to €35,000 for natural persons and to €100,000 for companies per month within Cyprus. A full list of local and foreign banks according to the Central Bank of Cyprus list excluding COOP banks is as the following: Alpha Bank Cyprus Limited Bank of Cyprus Public Company Ltd Co-operative Central Bank Ltd Hellenic Bank Public Company Ltd Housing Finance Corporation National Bank of Greece (Cyprus) Ltd Société Générale Bank – Cyprus Ltd USB BANK PLC The Cyprus Development Bank Public Company Ltd Emporiki Bank – Cyprus Ltd RCB Bank Ltd Piraeus Bank (Cyprus) Ltd Eurobank Cyprus Ltd National Bank of Greece S.A. Arab Jordan Investment Bank SA BBAC SAL BANQUE BEMO SAL Banque SBA Barclays Bank plc BLOM Bank SAL Byblos Bank SAL Credit Libanais SAL FBME Bank Ltd First Investment Bank Ltd Open joint-stock company AVTOVAZBANK Jordan Ahli Bank plc Lebanon and Gulf Bank SAL Privatbank Commercial Bank OJSC Promsvyazbank Jordan Kuwait Bank PLC Bank of Beirut SAL Central Cooperative Bank PLC Joint Stock Company ‘Trasta Komercbanka’ Bankmed sal IBL BANK SAL AS Expobank Alpha Bank S.A. Saxo Bank A/S. For comparison, Singapore which regarded as the world’s fourth financial center has 127 financial institutions many of which are world class. Eltoma Corporate Services is working with major banks in Cyprus helping to open bank accounts for Cyprus companies and companies from tax haven like Belize, BVI, Seychelles, Panama, etc. and for offshore companies from low tax jurisdictions like Hong Kong and Singapore. Opening of a bank account with a bank located in Cyprus is a simple and straightforward procedure. An option to open a bank account without travelling to Cyprus is also available.