Cyprus’s central bank has directed local banks to start shutting down accounts associated with offshore companies and foreign nationals. This decision followed a visit by U.S. Treasury officials in May 2018. These measures aim to decrease the share of foreign clients and refocus Cyprus’s banking sector on local residents. Cypriot banks are closing accounts of firms registered in low-tax offshore jurisdictions, such as the Seychelles, British Virgin Islands, Belize, and other regions.
Cyprus closes accounts and establishes new rules
Cyprus was once popular among businesspeople for its simplified account setup and data privacy. Now, the Central Bank has introduced new account-opening rules that apply to both local and foreign firms, as well as individuals. Local banks are permitted to open accounts only for businesses with a physical office in Cyprus that can provide full information about the ultimate beneficiary and justify the sources of their funds.
The bank may also request any documents that confirm the sources of income. Every six months, Cypriot banks are required to review all documents related to the current accounts of firms.
For a foreign company to open a bank account in Cyprus, it must now meet several conditions:
- maintain financial records and regularly submit them to the local financial institution;
- possess assets, such as shares, stocks, and other securities;
- affiliate with a Cypriot firm whose accounts are open with a local bank (for opening a corporate account).
Account closures in Cyprus: what are the options?
The shift in Cyprus’s offshore banking policies is driving Russian entrepreneurs to rethink their business strategies. “Dynasty Business Adviser” offers an excellent alternative – registering an offshore business in the UAE, and opening bank accounts.
The United Arab Emirates attracts businesspeople from around the world for various reasons, including:
- a wide range of banks willing to open accounts for offshore companies;
- communication and documentation in English, facilitating easy communication and record-keeping;
- a stable economy with strong growth prospects, a robust legal framework, and an excellent international reputation;
- the ability to open companies across various business types (excluding banking, insurance, and gambling);
- fast company registration combined with low costs;
- high levels of confidentiality.
An offshore company in the UAE offers numerous benefits: your business is completely exempt from taxes and fees, with no need for financial reporting or audits. Both UAE residents and foreign citizens can be shareholders. 100% foreign ownership is allowed. There are no minimum requirements for share capital or currency. Business registration in the UAE takes approximately 2-3 days. For more information on other advantages and details, our experts are available to assist.
“Dynasty Business Adviser” is an officially registered agent in the UAE, offering attractive and favorable cooperation terms. Schedule a professional consultation through the provided phone numbers, via Skype, or by email.
