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,
AND
WHEREAS despite the fact that challenges remain, there is a gradual
stabilization and restoration of confidence in the banking system,
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 Thirty
Fifth Decree, of 2015.
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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 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.
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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:
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.
(ii) payments for salaries of employees and tuition fees,
of a person who is studying abroad and is a first degree relative of a Cyprus
resident, upon presentation of supporting documents to the credit institution:
Provided that tuition fees shall be paid only to the beneficiary
educational institution, upon submission of the relevant justifying documents:
(iii) transfers of deposits/funds outside the Republic up to €1.000.000 per month, per person for each credit
institution and or payment institution regardless of the purpose:
Provided further
that the Committee may request information for payment and or transfer
falling within the category of sections (i) (ii) and (iii).
(b) Exports of euro
notes and/or foreign currency notes are prohibited in excess of €10.000, 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.
Official
Gazette,
Third
Part (I)
27.3.2013.
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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)
13.2.2015.
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5. The Enforcement of Temporary Restrictive
Measures on Transactions in case of Emergency Thirty Forth
Decree,
of 2015 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 twenty one day
period starting on the 16th of March 2015.
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Harris Georgiades
Minister of Finance
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