Banks in Cyprus begin to close accounts of offshore companies
According to Alexander Zakharov, attorney and partner of the Paragon Advice Group,Banks in Cyprus received direction from the Central Bank of Cyprus ordering them to close accounts of offshore companies. The information was also confirmed by sources in international companies, reported RBC news agency reports.
Companies that are registered in Belize, the British Virgin Islands, the Seychelles, and other island territories of the Caribbean will be classified as offshore. Cyprus banks will close the accounts on June 4.
Additionally, according to the news agency’s sources, the Central Bank of Cyprus has tightened the rules for offshore companies to open accounts in local banks. These rules will apply to companies in Cyprus, foreign companies, and individuals.
The Telegram channel Fun & Profit reported that after June 4, companies will be forced to disclose full information about the ultimate beneficial owner, including justification of the source of income. In addition, local banks will only open accounts for companies that operate in Cyprus.
The Telegram channel Fun & Profit, citing four sources, previously reported that banks in Cyprus began to forcibly close accounts of Russians, making them transfer funds to the Russian Commercial Bank, which is connected with the Russian VTB.