Offshore Bank Account Formation – Cyprus
Banking System in Cyprus
The banking system in Republic of Cyprus is still under the process of restructuring itself. Cyprus faced a financial crisis in the year 2013. The banking system in Cyprus is still under the process of reconsolidation, after the financial crisis.
The banking system in Cyprus has put a good amount of constraint on new lending and its supply and demand process. The total lending of Cyprus has the burden of having a non-performing loan portfolio, which is worth about 50% of the total lending of the country.
Republic of Cyprus had to implement number of new fore closures and insolvencies legislations, which has helped a large-scale restructuring of loans. The country has focussed more on the improvement of bank recovery prospects and is discouraging strategic defaults.
The European Investment Bank and the European Bank of Reconstruction and Development have made lending and guarantee program available to the banking system in Cyprus.
The standard banking system in Cyprus is almost similar to that of the banking systems of other European countries. This banking system in Cyprus is also similar to the banking system in the United States of America.
The Republic of Cyprus has a national Central Bank. This Central Bank functions as the supervising body over the functioning of other private banks in Cyprus. The Central Bank ensures that all the private banks in Cyprus meets with the standards of Bank of International Settlement or the BIS. The private banks in Cyprus have also to follow the corresponding directives, given by the European Union.
The Bank financial statements of banks in Cyprus is in compliance with the integral standards of banking and these financial statements are audited by those auditors, who are recognised internationally.
A deposit insurance scheme has been introduced since the year 2001 in Cyprus. This scheme is under the Banking Law of 1997.
Of all the tax havens, Cyprus has the highest number of banks which provides offshore banking options. Although Cyprus is a very small country, its banking system is almost 18 times bigger than its economy. The country has a sound banking system and it has its own laws. It has been extensively used by the Russians to safeguard their assets. Another important reason for its prominence is that a lot of banks shareholders are foreigners and that is why they empathize with them.
Banks Available at Cyprus
Very less personal documents are required while opening a bank account. An individual is not required to be present physically to open their account; it can be done online as well. The online banking is free of charge and the bank also provides credit and debit card options. The maintenance fee is also very less, EUR 50 quarterly for corporate account and EUR 25 monthly for individual account. This bank deals in multicurrency that is why it is preferred by businesses having global trade. However, the time taken to open your account will be delayed; the process takes up to 45 days after the complete submission of your documents.
It provides customized services depending on the client’s budget and requirements. In this sense it is very unique. Other additional services that it provides is debit and credit card, multicurrency transactions, online banking, loans and trade finance services. Physical presence is not required to open an account and the personal documents can be submitted online. It will take up to 30 days to open an account once all the required documents have been submitted. The maintenance fee for handling account is around EUR 150.
Eurobank Cyprus is a part of global conglomerate Eurobank Group. Its primary focus is in developing international business and trading. They provide free online banking 24x7; provide credit and debit cards, and other investment options. Time required is almost one month once all the necessary documents have been submitted. Eurobank’s advantage over other banks in Cyprus is that they do not charge any maintenance fee and their service quality is also superior to that of others.
Piraeus Bank has more than 15 branches in Cyprus and provides multiple banking services. However its charges are slightly on the higher side – for online banking per token they charge EUR 40, bank reference letter will cost you EUR 10 and audit confirmation letter will cost EUR 50. The maintenance charges are EUR 40 for three months.
Russian Corporation Bank was allowed to set up in Cyprus in the year 1995. The bank is financially very stable and provides better rates than other banks in the region. Account maintenance charges are very similar to others – EUR 40 for corporate account maintenance (quarterly) and EUR 12 for personal account maintenance.
Documents Required For Opening Bank Account
Banking Benefits in Cyprus
- No physical presence required for opening bank account
- Multi currency transaction possible
- Very less fees for maintaining corporate and personal account quarterly
- Mostly free online banking
- Stable economic region especially for banking industry
- Credit/Debit cards available with all banks
- Banking Sector is 19 times the size of the rest of the economies
- Higher number of players operating as compared to other countries
Why form an offshore bank account with DNS?
We have been helping individuals and companies to open up their bank account in various offshore locations. We have a cumulative experience of over 25 years in forming bank account for our customers. The process is hassle free and you just need to share some basic documents with us after which our account manager will handle all the necessary paperwork.