Cyprus Capital Control Details Revealed

Tyler Durden's picture

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):


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.


Via Philenews,

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.

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machineh's picture

7 days, 7 weeks, 7 years

machineh's picture

Until they make the controls stricter to plug leaks.

This is just the beta version of CapControls 1.0.

Now recruiting testers ...

gmrpeabody's picture

Given a little more time, the capital control measures will soon resemble Obama care, 1700 pages of what you can't do but they can. Too funny.

McMolotov's picture

It's always the end result of statism run amok. Everyone becomes a criminal of some sort in the eyes of "the law."

McMolotov's picture

It's like dealing with loan sharks.

notbot's picture

Reopened in 7 days, because by then everything will be fixed and people surely won't run on the banks.

Who are they kidding???



gmrpeabody's picture

The banks will re-open tomorrow and operate during normal business hours. However, due to safety concerns, customers will not be allowed back in until such time as their welfare can be guaranteed.

Cdad's picture

Flash:  Bernanke comments...hearing that The Federal Reserve Bank is NOT considering capital controls.  Prefers capital outofcontrols, instead.

redpill's picture

This is when the snake starts eating its own tail. What we're about to see unfold in Cyprus is going to be very ugly.

Rubbish's picture

Countdown to Armageddon.

espirit's picture

Just a coincidence?

 "United States prosecutors have asked Liechtenstein to hand over data on foundations and other financial vehicles as part of their investigation into tax evasion by wealthy Americans."

By Friday...

toys for tits's picture

Cyprus failed to macro-manage their economy and now believe that their situation will improve by micro-managing it?

Nussi34's picture

Looks like the Euro is facilitating trade and making things easier!

At least controlling all of this will create a lot of "jobs"!

Nussi34's picture

Looks like the Euro is facilitating trade and making things easier!

At least controlling all of this will create a lot of "jobs"!

Pladizow's picture

How do the Cypriots say "Gold Bitchez!"

machineh's picture

How is Cyprus going to engage in costly undersea gas exploration, when it has no capital?

Answer: foreign partners will demand most of the equity.

Let the natural resource looting begin!

JPM Hater001's picture

"carrying cash of over EUR3,000 across the border wil be banned."

Me and 100 of my best friends are going to go for a boat ride...each carrying $3000

Augustus's picture

Since the foreign partners will provide ALL of the funding for development, it is simple greed for them to want to get the investment returned.  everyone knows that foreign capital can never be reclaimed from a broke state.  Maybe they can make a deal with the ruskies.

Van Halen's picture

Holy crap! The balls of these bankster motherfuckers!

AlaricBalth's picture

This report was just released by the Congressional Research Service on March 15, 2013.

Europe’s Energy Security: Options andChallenges to Natural Gas SupplyDiversification

It discusses Europe's dependence on Russia (36%) for Natural Gas and the need to diversify. 

"If trends continue as projected, Europe’s dependence on Russia as a supplier is likely to grow. And, while it could be in Europe’s interest to explore alternative sources for its natural gas needs, it is uncertain whether Europe as a whole can, or is willing to, replace a significant level of imports of Russian natural gas. Some European countries that feel vulnerable to potential Russian energy supply manipulation may work harder to achieve diversification than others."

Bankrupt Cyprus. Claim their NG. Reduce vulnerability to Russia.

Good timing huh?

Divine Wind's picture




I bet Turkey has some things to say about this.

The territorial disputes are nowhere near being settled.


Super Broccoli's picture

if banks open tomorrow and cap control stops in a week, i swear i eat my wallet !

McMolotov's picture

Is it the one that says, "Green Mother Fucker?"

Alpo for Granny's picture

Say it again. Say withdraw again. I dare you I double dare you motherfucka say withdraw one more goddamn time.

* Apologies to ZH poster Say What Again for stealing his thunder but granny has has too much knob creek this morning and could not help herself*

Dr. Engali's picture

Eat your's more nutritious.

Colonel Klink's picture

Hope it's an iWallet, I hear they're edible.

localsavage's picture

What you don't think they will fix this the first time...cough Greece cough Greece

viahj's picture

quote machineh: "7 days, 7 weeks, 7 years"


Jonas Parker's picture

More like 7 to the 7th power...

mdtrader's picture

7 days because the banks probably won't last 7 days lol.

TeamDepends's picture

This time we will definitely read the fine print.

Urban Redneck's picture

and break out your SWIFT handbook, the whole google-speak "financial transactions on their own behalf institution" is loophole big enough to run an entire bank-run/robbery through...

Id fight Gandhi's picture

7 fat years, 7 lean years...

This really has to be the beginning of the end of the Euro.

frenchie's picture

need large family, each takes a bag of 2999 and hop


machineh's picture

After 7 days, they likely will chop that limit to 1,000.

Cypriots better get while the getting is good.

It only gets worse.

Then it's "Bailout 2" time.

kliguy38's picture

There will be no way to stop capital controls.........

StychoKiller's picture

Bring a couple of yer buddies to the bank (Smith & Wesson!)

McMolotov's picture

Cypriots are now terrrrists if they try to control their money in "unauthorized" ways. Coming soon to a bank near you.

Cdad's picture

Long Mediterranean pirates here.  

Gmpx's picture

I can offer my family members - 500 EUR each per hop

LoneStarHog's picture

May people leave the country with The Family Jewels, or is castration mandatory?

Winston Churchill's picture

Not if you leave your first born as collateral.

the iD's picture

if you keep taking it, expect them to keep giving it to you.

j0nx's picture

/thread. Same here in the states. As long as people keep slurping it down then they are gonna keep feeding it to them. It really does always boil down to that and has throughout history. Not sure why people think what's going on now is any different than what was going on 500 years ago...1000 years ago...10,000 years ago.

JohnnyBriefcase's picture

I also don't understand the idea that the past cannot happen again. Like we are somehow immune from thousands of years of human history. Why? Because we have cars and computers? really?


What a solid foundation!

NoWayJose's picture

Pssssst - Cyprus is an ISLAND.... you don't carry anything across the border without getting wet...

localsavage's picture

And don't try to take your gold out by boat.  We all know how that ends.