06 June 2014

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:

  • The present Decree shall be cited as the Enforcement of Temporary Restrictive Measures on Transactions in case of Emergency Thirtieth Decree, of 2014.
    • In the present Decree, unless a different meaning results from the context-
      "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

      "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.

    • Terms not otherwise defined in this Decree shall have the meaning ascribed to them by the Law.
  • 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:
    • Cashless payment and or transfer of deposits/funds to accounts held abroad are prohibited, with the exception of-
      • Cashless payment and or transfer of deposits/funds to accounts held abroad are prohibited, with the exception of-
        • transaction that falls within the normal business activity of the customer upon presentation of justifying documents as follows-
          1. 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.
          2. 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).
        • payments for salaries of employees upon presentation of supporting documents.
        • 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).
        • 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.
      • 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.
      • 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 –
        • €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,
        • €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.
      • Credit institutions shall not facilitate the circumvention of the restrictive measures.
      • The restrictive measures apply to all accounts, payments and transfers regardless of the currency denomination.

        1 inner

  • Exempted from the restrictive measures are:
    • 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 retransferred 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.
    • Withdrawal of cash using credit and or debit and or prepaid card issued by foreign institutions on accounts abroad
    • The cashing of cheques issued on accounts held with foreign institutions abroad
    • Cash withdrawals from accounts of credit institutions with the Central Bank.
    • Payments and receipts of the Republic
    • Payments and receipts of the Central Bank
    • 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.
    • The payments via a debit and or credit and or prepaid card.
    • Transactions or payments that have been authorised by the Committee.
  • 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.
  • This Decree shall apply for a ninety one day period starting on the 2nd of June 2014.

30 May, 2014

Source: Ministry of Finance: The Enforcement of Temporary Restrictive Measures on Transactions in case of Emergency Thirtieth Decree, of 2014

Official Announcement:
http://www.mof.gov.cy/mof/mof.nsf/index_en/index_en?OpenDocument

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