Fifteenth
decree of the Enforcement of Restrictive Measures
on
Transactions of Foreign Banks
UNOFFICIAL
TRANSLATION
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Decree as per articles 4 and 5
WHEREAS
there is lack
of substantial liquidity
and significant
risk of deposits
outflow with possible
outcome the risk of the viability of the credit
institutions
with chain effects that
could lead to
instability of
the financial system
and have destabilizing
consequences on
the economy
and society of the country as a whole,
AND WHEREAS under these circumstances an emergency situation is created that justifies the enforcement of temporary restrictive measures on transactions in order to safeguard financial stability,
AND
WHEREAS under these circumstances it is not necessary to impose
the same restrictive measures on all credit institutions
For
safeguarding public
order and
public security
and
for overriding
reasons of public
interest,
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12(Ι)
of
2013
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The
Minister of Finance in exercising the powers granted to him by
sections 4 and 5 of the Enforcement of Restrictive Measures on
Transactions in case of Emergency Law of 2013, following a
recommendation and the consent of the Governor of the Central
Bank, issues the following Decree:
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Short
title.
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1. The
present Decree shall be cited as the Enforcement of Temporary
Restrictive Measures on Transactions of Foreign Banks in case of
Emergency Fifteenth Decree, of 2013.
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Interpretation
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2. (1)
In the present Decree, unless a different meaning results from the
context-
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“international
customer” means a customer of a
credit institution that is included in the catalogue, who is:
Provided
that the Committee’s
approval has been obtained prior to the inclusion of such a
customer in the list of international customers∙ ∙
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“domestic
customer” means a customer of a credit institution
in the Republic other than an international customer∙
“compliance
officer” means the compliance officer as defined in section
69 of the the
Prevention and Suppression of Money Laundering Activities Law∙
«Law» means The Enforcement of
Restrictive Measures on Transactions in case of Emergency Law of
2013.
(2)
Terms not otherwise defined in this Decree shall have the meaning
ascribed to them by the Law.
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66(Ι)
of 1997
74(Ι)
of 1999
94(Ι)
of 2000
119(Ι)
of 2003
4(Ι)
of 2004
151(Ι)
of 2004
231(Ι)
of 2004
235(Ι)
of 2004
20(Ι)
of 2005
80(Ι)
of 2008
100(Ι)
of 2009
123(Ι)
of 2009
27(Ι)
of 2011
104(Ι)
of 2011
107(Ι)
of 2012
14(Ι)
of 2013
87(Ι)
of
2013
102(Ι)
of
2013
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3. (1) A credit
institution that satisfies the conditions of this paragraph may
apply to the Central Bank requesting its inclusion in the
catalogue of credit
institutions set out in the Annex of this Decree.
A credit
Institution is only
included in the catalogue set in the Annex of this Decree
provided that the Governor is satisfied that all of the following
conditions are met:
With respect to
liened
(blocked funds) held as collateral for credit facilities granted,
the lower between the liened (blocked) funds and outstanding
credit facility balance shall be excluded from the total customer
deposits mentioned in (ii) and (iii).
(2) The
Compliance
Officer of a credit institution that is included in the catalogue
shall
regularly monitor compliance with the conditions of this section
and report any change immediately to the Central Bank of Cyprus.
(3) New
international customers may be added on the list of international
customers submitted to the Central Bank of Cyprus under paragraph
3(d).
Provided
that the credit institution shall immediately notify the Central
Bank of Cyprus of any changes to the list of international
customers submitted to the Central Bank of Cyprus under paragraph
3(d) and submit to the Central Bank of Cyprus the new list of
international customers with written confirmation from the
Compliance Officer of the credit institution that is included in
the catalogue,
that all the persons in the list of international customers are
international customers as defined in paragraph 2 of this Decree.
Whereas the new list of international customers replaces the old
list and enters into force immediately after confirmation of the
Central Bank of Cyprus about the receipt of the list.
Provided
that the Central Bank of Cyprus may, if it deems necessary,
request additional confirmation from the External Auditors of the
credit institution.
(4) The
Compliance
Officer of the credit institution that is included in the
catalogue shall
electronically report the credit institution’s transactions
weekly to the Central Bank of Cyprus.
4.
By virtue of sections 4 and 5 of the Law, following a
recommendation by the Governor and with the consent of the
Governor, the following restrictive measures are imposed on credit
institutions that are included in the catalogue which is set in
the Annex of this Decree:
Provided
that the opening of a current/sight account related to the new
loan is permitted
and the funds in the account can only be used for the servicing of
the loan and for the regular activity of the client and not for
depositing purposes:
Provided
further that the credit balance of the current/sight
account, cannot at anytime exceed the amount of the loan balance:
Provided even further that the loan
proceeds must be disbursed into a current/sight account, within
the same credit institution, within the Republic and shall be
subject to the restrictive measures imposed to current/sight
accounts under any other Decree issued under the Law.
The funds in the sight/current
account can be deposited in cash or be transferred from an account
abroad or from other accounts within the Republic subject to the
prevailing restrictive measures.
Provided that
all permissions relating to an international customer are
applicable only if accounts of international customers, since the
entry into force of the Enforcement of Temporary Restrictive
Measures on Transactions in case of Emergency First Decree, of
2013 and until the date the credit
institution is included in the above mentioned catalogue,
have not
been credited with funds from accounts of domestic
customers and with funds from domestic banks.
Provided further
that in
the case that funds from accounts of domestic
customers and funds from domestic banks
have been credited into the account of an international customer,
since the entry into
force of the Enforcement of Temporary Restrictive Measures on
Transactions in case of Emergency First Decree, of 2013 and until
the date the credit
institution is included in the above mentioned catalogue,
these funds shall be subject to the provisions of any other Decree
issued under the Law.
5-(1) The Enforcement of Temporary
Restrictive Measures on Transactions of Foreign Banks in case of
Emergency Fourteenth Decree, of 2013 is repealed.
(2) The repeal of the Decree
referred to in subparagraph (1) does not-
and such
investigation,
legal
proceeding or
remedy
that can arise, continued
or executed,
and
such penalty,
forfeiture or
punishment
can be imposed
as if
the
said Decree
is not
repealed.
6.
This Decree shall apply for a twenty eight day period starting on
the 23rd
of December 2013.
Harris Georgiades
Minister of Finance
20th
December 2013.
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APPENDIX
[Paragraph
3(1) and (5) and paragraph 4]
CATALOGUE
OF CREDIT INSTITUTIONS
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1.
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Arab
Jordan Investment Bank SA
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2.
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Bank
of Beirut SAL
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3.
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BankMed
SAL
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4.
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Banque
BEMO SAL
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5.
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Banque
SBA
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6.
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Barclays
Bank PLC
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7.
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BBAC
SAL
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8.
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BLOM
Bank SAL
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9.
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Byblos
Bank SAL
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10.
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Credit
Libanais SAL
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11.
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Jordan
Ahli Bank plc
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12.
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Lebanon
and Gulf Bank SAL
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13.
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OJSC
Promsvyazbank
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14.
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Open
joint-stock company AvtoVAZbank
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15.
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Privatbank
Commercial Bank
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16.
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Russian
Commercial Bank (Cyprus) Ltd.
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