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Cyprus relaxes most domestic capital controls

The Finance Ministry said in a statement Friday that a prohibition on cashing checks as well as caps on domestic transactions and payments that don’t require central bank vetting have been removed.

Cyprus Capital Controls relaxedTHE Ministry of Finance announced new but not complete relaxation in the restrictions on capital movement.

With the new 29th decree, all restrictions on transactions within the Republic are abolished, following the roadmap for relaxations agreed on 8 August 2013, except for the opening an account at another financial institution.

Specifically the relaxations are:

  • the cashing of checks is allowed
  • the limits on transfers and payments of €50,000 for natural persons and €200,000 for legal persons, per institution, are abolished.

However, capital control restrictions on money transfers abroad remain in place. The authorities hope to lift them by the end of the year.

The 20th decree on the international banks is issued without changes.

Further reading

The Enforcement of Temporary Restrictive Measures on Transactions in case of Emergency Twenty Ninth Decree, of 2014. (Unofficial translation)

Readers' comments

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  • Alex says:

    Relaxation of the first control mostly serves those who owns money to the banks and avoid taxes (unless banks will start checking for NPLs during cashing checks).

    Second control does not give much of advantage to those whose money is trapped in local banks, as opening of new accounts is still not permitted (and where permitted – no transfers to these accounts is allowed).

  • hani chehaiber says:

    The Finance Ministry has to stop all these gimmick head line propaganda cause it brings more harm to trust. Give a fixed date and abolish all controls. No sane person will transfer any money to a country that has controls.

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