The Central Information Register for the Issuers of Dishonoured Cheques (CIR) was established in 2003 under the auspices of the Central Bank of Cyprus, in order to address the issue of dishonoured cheques and increase confidence in the use of cheques as a safe means of payment.
Banks are required to report dishonoured cheques to the Central Bank of Cyprus and individuals or companies who have issued dishonoured cheques above a certain aggregate value or on more than a specified number of occasions in a 12 month period are entered on the register.
Inclusion on the register means that the individual or company cannot operate a bank account in Cyprus. All existing accounts in the name of the individual or company are frozen and no new accounts may be opened. Removal from the register requires the settlement of all outstanding cheques and a "clean" period of at least 12 months.
In order to improve the deterrent effect of the CIR, access to its basic information has now been extended to all interested parties, such as potential providers of goods and services on credit, via a service provider.
At the same time the directive governing the operation of the CIR was amended to take greater account of the period within which dishonoured cheques are settled when assessing whether a listed person is to be delisted or not, particularly when it can be proved that cheques have been settled within one month of listing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.