Sixth Decree for Temporary Restrictive Measures on Transactions

The sixth Decree came into force on 11 April 2013. The Decree includes a further loosening of the capital controls first introduced on 27 March 2013.

In this context:

1. Cashless payments and/or transfers of deposits/funds in an account held in another credit institution within the Republic of Cyprus is permitted up to €300.000. For payments above €300.000, the credit institution submits to the Committee established by the Minister of Finance (and operating at the CBC) a request for each payment as well as the necessary justifying documents.

It should also be clarified that the relaxation of restrictions on cashless payments and money transfers for amounts up to €300.000 was made in order to facilitate transactions within the Republic of Cyprus and not to transfer funds from one institution to another. Hence, the provision of paragraph 3 (i) of the Decree is pertinent here, which states that it is prohibited for any credit institution to make payments or transfers which aim to circumvent the restrictive measures.

2. There has been a relaxation in the maximum amount allowed for payments made outside the Republic of Cyprus and which are part of the ordinary business activity of the customer. More specifically, payments up to €20.000 per day per account are allowed (instead of €5.000) and are not subject to Committee’s approval. Requests for payments outside the Republic of Cyprus for amounts over €20.001 must be submitted by the credit institution to the Committee for approval.

3. The proportion of deposits that can be transferred at the maturity date either in a current account or in a new fixed term deposit with the same credit institution has increased from 10% to 20% or €5.000, whichever is higher.

4. There has been an increase in the amount of cash that can be exported by a physical person per journey abroad from €1.000 to €2.000.

5. The opening of a new account for any customer who is not an existing customer of a credit institution is prohibited, unless the account will be credited with funds transferred from abroad or the prior approval of the Committee is obtained.

Sixth Decree for Temporary Restrictive Measures on Transactions (UNOFFICIAL TRANSLATION)