Twenty
fifth decree for the Enforcement of Restrictive Measures
on
Transactions in case of Emergency Law of 2013
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,
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 from 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 in case of Emergency Twenty
Fifth Decree, of 2014.
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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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81(I)
of 2012.
128(I)
of 2009
52(I) of 2010.
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«Committee»
means the Committee established by virtue of section 9 of the Law.
«electronic money institution» has the meaning ascribed to that term in section 2 of the Electronic
Money Law of 2012 ∙
«Payment Institution» has the meaning ascribed to that term in section 2 of the Payment Services Law of 2009 and 2010 and includes the Cyprus Post in providing money transfer services∙ |
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«Law» means
The Enforcement of Restrictive Measures on Transactions in case of Emergency Law
of 2013.
«debit and or credit and or prepaid card» means debit and
or credit and or prepaid card issued by a credit institution or payment
institution or electronic money institution.
«cashless payment
means payment by cheque and or by direct debit and or by standing order».
(2) Terms not otherwise
defined in this Decree shall have the meaning ascribed to them by the Law.
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Imposition
of restrictive measures.
Official
Gazette,
Third
Part (I)
27.3.2013.
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3. 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:
(a) The
maximum amount of cash withdrawal shall not exceed €300 daily, per natural person
or €500 daily per legal person, in each credit institution or the equivalent
of these amounts in foreign currency. All cash withdrawals (namely
withdrawals via debit and or credit and or prepaid cards, as well as withdrawals
from the credit institution’s tellers) are computed per person consolidating all
accounts held by the said person in each credit institution:
Provided that any part
of the maximum cash withdrawal allowed daily which is not withdrawn by the
beneficiary during the day in which the limit applies, starting on the 27th
of March 2013 the date of entry into force of the Enforcement of Temporary
Restrictive Measures on Transactions in case of Emergency First Decree, of
2013, may be withdrawn at any time afterwards.
(b)
The cashing of cheques is prohibited.
(c)
The following are permitted:
(i)
cashless
payment or transfer of deposits/funds to accounts held in other credit
institutions within the Republic up to €15.000 per month per natural person in
each credit institution regardless
of the purpose ∙
(ii)
cashless
payment or transfer of deposits/funds to accounts held in other credit
institutions within the Republic up to €75.000 per month per legal person in
each credit institution regardless
of the purpose ∙
(iii)
cashless
payment or transfer of deposits/funds to accounts held in other credit
institutions within the Republic for the purchase of goods and or services regardless
of the amount :
Provided that the cashless payment from
one credit institution to another, for a person’s own account is not permitted:
Provided further that the credit
institution may request justifying documents if it is deemed necessary.
(d)
Cashless
payment and or transfer of deposits/funds to accounts held abroad are
prohibited, with the exception of-
(i) transaction that falls within the
normal business activity of the customer upon presentation of justifying
documents as follows-
(aa)
payment and or transfer of
deposits/funds of up to €1.000.000 per transaction, is not subject to the
Committee’s approval:
Provided that each
credit institution shall ensure that the justifying documents presented in
each case, justify the execution of the payment and or of the transfer of
deposits/funds.
(bb)
payment and or transfer of
deposits/funds above €1.000.000
per transaction, is
subject to the Committee’s approval. The relevant credit institution shall
submit to the Committee a request for each such payment and or transfer of
deposits/funds as well as the necessary justifying documents. The relevant
payment institution may submit to the Committee a request for each such
payment and or transfer of deposits/funds and the necessary justifying
documents and the name of the credit institution involved. The Committee in taking its decision takes into account the justifying documents and the liquidity
buffer situation of the credit institution. The Committee’s decision is communicated to
the credit institution in every case and to any relevant payment institution.
Provided that
the Committee may request information for payment and or transfer falling
within the category of section (bb).
(ii) payments for salaries of employees upon
presentation of supporting documents.
(iii) living expenses up to €5.000 per quarter as well as tuition fees,
of a person who is studying abroad and is a first degree relative of a Cyprus
resident, on the basis of supporting documents:
Provided that payment and or transfer for living expenses shall be
allowed only upon submission to the relevant credit institution of documents
establishing that the person receiving the payment and or transfer
of deposits/funds is studying abroad and is a first degree relative of a
Cyprus resident:
Provided further that tuition fees shall be paid only to the
beneficiary educational institution, upon submission of the relevant
justifying documents:
Provided still further that the credit institution maintains a
catalogue in which it records and monitors all payments:
Provided still still further that the Committee may require the
submission, to its attention, of the catalogue mentioned in the above proviso
and or information on any payment and or transfer which falls under case
(iii).
(iv) transfers of deposits/funds outside the Republic up to €5.000 per month, per person for each credit
institution and or payment institution regardless of the purpose.
(e)
It is prohibited to terminate fixed term
deposits prior to their maturity unless the funds are used
(i)
to repay a loan
and/or overdraft and/or credit card within the same credit institution provided-
(aa)
the said credit facility was granted prior
to the entry into force of the Enforcement of Temporary Restrictive
Measures on Transactions in case of Emergency First Decree, of 2013, and
(bb)
there are no
sufficient credit balances in a current/sight account in the same credit
institution for the repayment of the credit facility, and
(cc)
in the case of an overdraft and/or credit
card the maximum repayment amount originating from a fixed term deposit
cannot be higher than the outstanding balance during the entry into force of the
Enforcement of Temporary Restrictive Measures on Transactions in case of
Emergency Twelfth Decree, of 2013:
Provided that the remaining amount of the fixed term deposit remains
for the remaining maturity period under the same conditions:
Provided further that in the case where part of the overdraft limit or
the whole limit of the overdraft is repaid , then the part of the overdraft limit
or the limit of the overdraft which is repaid shall be cancelled :
Provided still further that, in the case of repayment of an overdraft
and/or credit card, the relevant termination of fixed term deposit is
permitted only once during or after the entry into force of the Enforcement
of Temporary Restrictive Measures on Transactions in case of Emergency
Twelfth Decree, of 2013:
(ii)
to create one or
more fixed term deposits, within the same credit institution, the total
amount of which is equal to the initial deposit and for a term at least equal
to the initial term of the terminated deposit:
Provided that new beneficiaries can be added or deleted on the new
deposit;
(iii)
to transfer up to
€5.000 monthly, from a fixed term deposit in a sight/current account within
the same credit institution, in duly substantiated cases where the credit
institution is satisfied that the transfer is done for humanitarian reasons:
Provided that the credit institution maintains a catalogue, in which
it lists in detail all the cases:
Provided further that the remaining amount of the fixed term deposit
remains for the remaining maturity period under the same conditions.
(iv)
to transfer, to a sight/current account within the
same credit institution, in the case of fixed term deposit belonging to a
natural person, of the exact amount to be solely used for the payment of
medical expenses to the medical care provider, provided that-
(aa) the justified documents are presented to the credit institution,
and
(bb) no
sufficient funds are available in a sight/current
account, with the same financial
institution, to cover the payment of the medical expenses:
Provided that the
remaining amount of the fixed term deposit remains for the remaining maturity
period under the same conditions.
(v)
for a transfer to a sight/current account within the same credit
institution, to repay obligations to the Republic provided that –
(aa) the justifying documents are presented to the credit institution,
and
(bb) the
payment is made to the Republic either through a direct electronic transfer
or through the issue of a bankers draft in favour of the Republic
(cc) no sufficient
funds are available in a sight/current account, with the same credit institution,
to cover the payment of the obligations:
Provided that the
remaining amount of the fixed term deposit remains for the remaining maturity
period under the same conditions.
(vi)
for the payment of real estate acquisition
in the Republic provided that-
(aa) the funds
are paid directly into a loan account of the seller of the real estate within
the same credit institution and
(bb)
the loan of the
seller of the real estate was granted prior to the entry into force of the Enforcement
of Temporary Restrictive Measures on Transactions in case of Emergency First
Decree, of 2013 and
(cc)
the justifying documents are presented to
the credit institution and
(dd) no
sufficient credit balances are available in a sight/current account, with the
same credit institution, to cover the payment.
Provided that the
remaining amount of the fixed term deposit remains for the remaining maturity
period under the same conditions.
(f) On the
maturity of fixed term deposits, the higher amount between €5.000 or 20% of
the total amount of the deposit in question, shall, according to the choice
of the depositor, either be transferred to a sight/current account or be deposited
in a new fixed term deposit in the same credit institution. For the remaining
amount the maturity shall be extended for one month:
Provided that any new fixed term deposit that is created, during or after the
entry into force of the Enforcement of Temporary Restrictive Measures on
Transactions in case of Emergency Fifteenth Decree, of 2013, with funds from a sight/current
account is not subject to the restrictions of the present subparagraph.
(g) It is only
permitted to transfer €300 daily per natural person, from a notice account of
a natural person, to a sight/current account of a natural person, within the
same credit institution.
Provided that any
part of the daily allowed transfer limit of money, which is not transferred
from a notice account of a natural person to a sight/current account of a
natural person during or after the date of entry into force of the
Enforcement of Temporary Restrictive Measures on Transactions in case of
Emergency First Decree, of 2013, may be transferred at any time afterwards.
(h) Sums transferred from a fixed term deposit
to a sight/current account shall be subject to the restrictive measures
applicable to sight/current accounts.
(i)
Exports of euro notes and/or foreign currency notes are
prohibited in excess of €3.000, or the equivalent in foreign currency, per
natural person per journey abroad.
The Director of Customs and Excise Department shall ensure the
implementation of this measure.
Provided that the amount of €3.000 cannot be withdrawn
from a credit institution in addition
to the daily amount of €300,
the withdrawal of which is permitted under the above paragraph 3(a).
(j) Every financial
transaction, payment and or transfer which has not been completed prior to
the entry into force of the Enforcement
of Temporary Restrictive Measures on Transactions in case of Emergency First
Decree, of 2013 shall be subject to the restrictive measures provided in this
Decree:
Provided that any financial transaction,
payment and or transfer, which has not been processed by the credit
institution prior to the entry into force of the Enforcement of Temporary Restrictive Measures on
Transactions in case of Emergency First Decree, of 2013 shall be cancelled
and will have to be submitted anew.
(k) Credit institutions
shall not facilitate the circumvention of the restrictive measures.
(l) The restrictive measures
apply to all accounts, payments and transfers regardless of the currency
denomination.
(m) It is prohibited to transfer euro notes and/or foreign currency notes, in
areas of the Republic, where the Republic does not exercise effective
control, in excess of the amount of –
(i) €300
daily or its equivalent in foreign currency, per natural person who has its
permanent residence in the Republic:
Provided
that, in the case a natural person resides in areas of the Republic where the
Republic does not exercise effective control, the transfer of euro notes in
excess of €300 is permitted, if the euro notes originate from a salary
payment, in the areas where the Republic exercises effective control, upon
presentation of justifying documents,
(ii) €500 daily or
its equivalent in foreign currency, per natural person who has its permanent
residence abroad.
The
Director of Customs and Excise Department shall ensure the implementation of
this measure.
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Official
Gazette,
Third
Part (I)
2.8.2013.
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(n) The opening of a new account for any person who
is not an existing customer of a credit institution on the date of entry into
force of the Enforcement
of Temporary Restrictive Measures on Transactions in case of Emergency Sixth
Decree of 2013, is prohibited unless-
(i) the account will only be credited with funds transferred from
abroad to the Republic, or
(ii)
the prior approval
of the Committee is obtained or.
(iii)
The account is a new fixed term deposit created with funds from cash provided that :
(aa) the
amount to be deposited exceeds €5.000 and
(bb) the term of
the new fixed term deposit is at least 3 months,
and
(cc) the new fixed term deposit cannot be
terminated prior to its maturity.
Provided that the new fixed term deposit is not
subject to the restrictive measures imposed by the provisions of sub-paragraphs
(e),(f) and (g):
Provided further that
upon the first maturity of the fixed term deposit the funds from the fixed
term deposit will not be subject to the restrictive measures imposed by
sub-paragraphs (a), (c), (e) ,(f) and (g) of the Decree:
Provided
even further that the opening of a current account for the
beneficiary/beneficiaries of the fixed term deposit is prohibited, or
(iv)
The account relates
to a new loan granted after the entry into force of the Enforcement
of Temporary Restrictive Measures on Transactions in case of Emergency
Nineteenth Decree of 2013:
Provided
that the opening of a current/sight account related to the new loan is
permitted and the funds in the current/sight account can only be used for the
servicing of the loan and for the regular activity of the customer and not
for depositing purposes:
Provided
further that the credit balance of the current/sight account, cannot at any
time 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 prevailing restrictive measures. The funds in the current/sight 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.
(o) It is prohibited to add
new beneficiaries in a current/sight
account
unless the prior approval of the Committee is obtained.
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Exemptions.
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4. Exempted from the
restrictive measures are:
a.
All money transferred
to the Republic from abroad, during or after the date of entry into
force of the Enforcement of Temporary Restrictive Measures on Transactions in
case of Emergency First Decree, of 2013:
Provided that, if money transferred from abroad to a credit
institution in the Republic, during or after the date of entry into
force of the Enforcement of Temporary Restrictive Measures on Transactions in
case of Emergency First Decree, of 2013, are re-transferred to a second
credit institution in the Republic, the second credit institution considers
that the money fall under the exemption of the present subparagraph only if
the first credit institution in the Republic, clarifies in the details of the
transfer that the money fall under the exemption of the present subparagraph.
b.
Withdrawal of cash
using credit and or debit and or prepaid card issued by foreign institutions on
accounts abroad∙
c.
The cashing of cheques
issued on accounts held with foreign institutions abroad∙
d.
Cash withdrawals from accounts of credit
institutions with the Central Bank.
e.
Payments and receipts
of the Republic ∙
f.
Payments and receipts
of the Central Bank∙
g.
The foreign diplomatic
missions and∙the UN missions in the Republic based on the exemptions
specified in the Vienna Convention for Diplomatic Relations and the
Agreements between the Republic and the United Nations and other
international Agreements which have precedence over national legislations.
h.
The payments via a
debit and or credit and or prepaid card.
i. Transactions or payments that have been authorised
by the
Committee.
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Repeal
of the
Decree.
Official
Gazette,
Third
Part (I)
20.12.2013.
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5. The Enforcement of Temporary Restrictive
Measures on Transactions in case of Emergency Twenty Fourth Decree, of 2013
is repealed.
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Validity
of this Decree.
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6. This Decree shall apply for a twenty one day
period starting on the 20th of January 2014.
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Harris Georgiades
Minister of Finance
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