Thirtieth Decree by the Minister of
Finance on the enforcement
of restrictive measures on transactions
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
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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 Thirtieth 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 o
f 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) 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.
(b) Exp orts 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.
(c) 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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(d) Credit institutions shall not facilitate the circumvention of the
restrictive measures.
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(e) The restrictive measures apply to all accounts, payments and
transfers regardless of the currency denomination.
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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)
2.5.2014.
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5. The Enforcement of
Temporary Restrictive Measures on Transactions in case of Emergency Twenty Ninth
Decree, of 2014 is repealed, on the date of entry into force of the present
Decree.
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Validity of this Decree.
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6. This Decree shall apply for a ninety one day
period starting on the 2 nd of June 2014.
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Harris Georgiades
Minister of Finance
30
May, 2014
