Cyprus Relaxes Restrictions on Capital Movement

The Finance Ministry published, on 8 December 2014, Decree 32 under Articles 4 and 5 of the Enforcement of Restrictive Measures on Transactions in Case of Emergency Law of 2013, which has further relaxed restrictions on capital movement. Under the Decree:

• Central Bank of Cyprus approval is no longer required for payments or transfers of funds abroad up to €2 million [ €1 million);

• The transfer of deposits or funds abroad up to €10,000 [ €5,000) is now freely permitted;

• Physical exports of euro notes or foreign currency notes are permitted up to €6,000 [ €3,000) per natural person, per journey abroad.

Capital controls were imposed on the is Lands banking sector in 2013 as part of a European Union agreement for a €10 billion euro international bailout, which forced major depositors at the two biggest banks in Cyprus to pay part of the cost of the rescue.