Cyprus Capital Control Details Revealed
As of now, the banks are still expected to open tomorrow; some of the details of the capital controls to be put in place have been leaked (via Phileleftheros):
- *CYPRUS CONTROLS APPLY TO ALL ACCOUNTS, CURRENCIES
- *CYPRUS BANK CONTROLS INCLUDE CURBS ON CASHING CHECKS
- *CYPRUS BANK CONTROLS TO BE IN FORCE FOR 7 DAYS
- *CYPRUS CURBS INCLUDE BAN ON ENDING TIME DEPOSITS
- *CYPRUS CURBS TO INCLUDE PAYMENTS ABROAD
So no outflows allowed to a foreign country (cough Russia cough) and for only 7 days (Pluto Standard Time?); furthermore, talk is that carrying cash of over EUR3,000 across the border wil be banned.
The restrictions will be placed on transactions when banks are open a decree issued by the Ministry of Finance. Then we present the provisions of the Ordinance provided that changes may be made, as yet not announced officially. Since the opening of bank risk and deposit outflows because under these conditions created an emergency situation, and because for ensuring public order and public safety and for overriding reasons of public interest, the Minister of Finance, in exercise of the powers conferred by Articles 4 and 5 of the restrictive measures in trade in Case of Emergency Act of 2013, upon the recommendation of the Governor of the Central Bank will issue a decree provides for the following:
A) No cashing checks. Provided that may deposit checks into account.
(B) Any non-cash payment or money transfer outside the Republic, except:
- (i) payments for commercial transactions within the ordinary activities of the client by presenting documentary evidence. Not require the production of documents for amounts not exceeding €500.
- (ii) payment of salaries of employees working outside the Republic
- (iii) subsistence expenses up to €10,000 per quarter tuition and persons studying abroad and first-degree relatives of persons who have their habitual residence in the Republic, with the presentation of relevant evidence. Provided that all payments made to the beneficiary.
- (iv) Payments or transfers outside the Republic by debit or credit card or prepaid, to €5,000 per month per person for each institution.
- (v) Payments of claims by insurance companies
- (vi) or other payments and money transfers is ensured provided that prior approval of the Commission
(C) Any termination filing deadline before the specified end date unless the product will be used to repay the loan within the same institution.
(D) The transport of euro banknotes or foreign currency in excess of the amount of € 3000 or the equivalent in foreign currency per person per trip abroad. The Director of Customs shall implement this measure.
(E) Financial transaction, payment or transfer, which is not completed before the commencement of this Ordinance, subject to the provisions of this Order restrictive measures.
(F) prohibit a credit institution to perform cashless payments or money transfers that aim to circumvent the restrictive measures.
(G) The restrictive measures apply to all accounts, payments and transfers, regardless of the currency.
Excluding restrictive measures:
(A) All money transferred from abroad to the Republic.
(B) Diplomatic Missions
(C) financial transactions on their own behalf institution
(D) Payments authorized by the Commission ?
(E) The Republic ?
(G) The Central Bank. This Order is valid for a period of seven days commencing from the date of publication in the Official Gazette.