With
the achievement of the milestones set out in the roadmap and the
overall stabilization and restoration of confidence in the banking
system it is feasible to ease further the restrictions as follows:
(a) abolition of the daily maximum amount of cash withdrawal of €300 per natural person and €500 per legal person,
(b)
increase of the current limit with respect to the transfer of money
within the Republic , regardless of the purpose, per natural person,
per month, from € 20.000 to € 50.000 and per legal person,
regardless of the purpose, per month from € 100.000 to €
200.000,
(c)
abolition of the prohibition to terminate a fixed term deposit prior
to its maturity date, and therefore all related exemptions,
(d)
The opening of a new account for any person who is not an existing
customer of a credit institution it is allowed provided that the
account is a new fixed term deposit created
with
funds from cash provided
that the amount to be deposited exceeds €5.000 and the
new fixed term deposit cannot be terminated prior to its maturity.
Note that the Decree on International Banks remains unchanged.
The period of validity of the two Decrees is 35 days.
UNOFFICIAL
TRANSLATION
The
Enforcement of Restrictive Measures on Transactions in case of
Emergency Law of 2013
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Decree
as per articles 4 and 5
WHEREAS
there is
lack
of substantial
liquidity
and 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 |
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. |
1. The
present Decree shall be cited as the Enforcement of Temporary
Restrictive Measures on Transactions in case of Emergency Twenty
Eighth Decree, of 2014.
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Interpretation |
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. |
«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:
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.
(i)
transaction that falls within the normal business activity of the
customer upon presentation of justifying documents as follows-
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.
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.
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.
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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(i)
the
account will only be credited with funds transferred from abroad
to the Republic, or
Provided
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-paragraph (b) of the Decree:
Provided
further that the opening of a current account for the
beneficiary/beneficiaries of the fixed term deposit is prohibited,
or
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.
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Exemptions.
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4.
Exempted
from the restrictive measures are:
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.
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Repeal
of the
Decree.
Official
Gazette,
Third
Part (I)
21.2.2014.
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5.
The Enforcement of Temporary Restrictive Measures on Transactions
in case of Emergency Twenty Seventh Decree, of 2014 is repealed,
on the date of entry into force of the present Decree.
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Validity
of this Decree. |
6.
This Decree shall apply for a thirty five day period starting on
the 31st
of March 2014.
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Harris
Georgiades
Minister
of Finance
28
March, 2014
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