Such offices are not considered to be businesses as defined in the Banking Business (Temporary Restrictions) Law Chapter 124 and they do not need a licence from the Minister of Finance, although as non-residents they need exchange control permission and should also register their names with the Registrar of Companies. In granting its permission, the Central Bank of Cyprus requires the office to observe the following conditions:-
13.1 no banking business may be carried on;
13.2 the office must be used exclusively to facilitate contact between the bank represented and the rest of the world;
13.3 the Central Bank may at any time request information about the activities of the office; and
13.4 all expenses must be covered from external sources.
As with IBUs, only foreign banks enjoying a good reputation internationally and formed in countries where there is adequate banking supervision, including the facility of lending of last resort, will be authorised to establish bank representative offices on the island.
The purpose of this publication is to assist clients and associates in clarifying and appreciating the range of opportunities which are available in or through Cyprus. Although every effort has been made to provide the reader with a clear and comprehensive picture of the island's beneficial regime, it should be appreciated that is not possible to cover all aspects comprehensively in a publication of this size.
Individuals or companies who are seriously considering using Cyprus for any of their international business activities are advised to obtain expert professional advice before taking positive action.
