Central Bank of Cyprus ordered companies to close offshore accounts starting June 4Sunday, 17 February 2019
The rules for opening accounts for foreign companies in Cyprus have become increasingly tougher
The Central Bank of Cyprus has warned financial institutions about the need to close offshore companies’ accounts starting on June 4. This is reported by Telegram channel dedicated to finance Fun&Profit.
From now on, in order to become a bank customer in Cyprus, a foreign company will need to provide a full package of documents (the Know Your Customer rules) in respect of the ultimate beneficial owner, including justification of the source of income and welfare.
In addition, banks can request ID copies, tax numbers, bank and professional letters of recommendation, personal income tax statements, accounts with other banks, as well as links to public sources regarding activities and biographies.
The regulator notes that the initiative is aimed at the fact that banks will primarily serve companies “present in Cyprus” (with real offices). Apart from the full package of documents, companies will have to keep accounting records and provide them to the bank, have assets such as investments in shares or other securities, and be affiliated with a Cypriot company that has accounts with this bank.