Author: Stella Evangelou, SENIOR CORPORATE ADMINISTRATOR @ A. Karitzis & Associates LLC
Guide to Opening Personal and Corporate Bank Accounts in Cyprus
INTRODUCTION
The advanced and innovative banking system of Republic of Cyprus has increasingly been considered as a catalyst to the economic and market growth. Simultaneously, however, the process is becoming more complicated and/or onerous because of EU Directives and Regulations, combined with domestic legislation for Due Diligence checks and fulfilling the AML criteria. It’s therefore important to underline that, in relation to every application for the opening of a bank account, either corporate or personal, receiving the final approval rests entirely with each bank and their Compliance Department as per their own internal policies.
This guide is confined in setting out the procedure, requirements and conditions for the opening of a personal and/or corporate bank account.
OPENING OF A PERSONAL BANK ACCOUNT
The Procedure Outline
- Choose the bank by taking into consideration your needs and preferences, the fees (as may apply) and the available services/products.
- Collect the requisite information and documentation (as set out below).
- Submit the request for the opening of a personal bank account. Upon an initial review, if it is considered necessary, the bank may request additional information and documentation.
- Provided that the applicant has successfully completed the Due Diligence and AML checks, the relevant application form(s) shall be signed and the original version to be delivered to the bank.
- ·Arrange for a personal visit of the applicant to the premises of the bank. A bank may accept an online meeting with the applicant; however, this depends on the policies of each bank.
- Upon the successful completion of the process, the account details are provided to the applicant in order to deposit the minimum amount (as applicable) for the activation of the personal account.
Requisite Information
In order to examine an application for the opening of a personal bank account, a bank will require information including, but not limited to:
- Passport details and Taxpayer Identification Number
- Financial information (i.e. Source / Value of Income and Wealth)
- Purpose / reason of application for opening the account
- Nature of the transactions to be performed
- Banking services needed (i.e. Debit Card and Internet Banking)
- [If the applicant is a foreigner and does not reside in Cyprus] Connection with the Republic of Cyprus and detailed explanation why a bank account is needed in the Republic of Cyprus
Requisite Documentation
- Legible certified true copy of passport (inclusive of photograph, signature and expiry date)
- Proof of residential address / Utility Bill (not older than six months)
- Bank Reference Letter (not older than six months)
- Detailed CV (Resume)
- Documents proving source of income / fund (including, without limitation, tax declaration, payslips and/or bank statements)
OPENING OF A CORPORATE BANK ACCOUNT
The Procedure Outline
- Choose the bank by taking into consideration the company’s needs, the fees (as may apply) and the available services/products.
- Collect the requisite information and documentation (as set out below).
- Submit the request for the opening of a corporate bank account. Upon an initial review, if it is considered necessary, the bank may request additional information and documentation.
- Provided that the Company and the Related Parties have successfully completed the Due Diligence and AML checks, the relevant application form(s) shall be signed by such Related Parties and the original version to be delivered to the bank.
- For the avoidance of doubt, the term “Related Party / Related Parties” shall refer to the company’s Beneficial Owners, Registered Shareholders, Trustees and Beneficiaries (if applicable), Directors, Secretary, Signatories, Cardholders and Internet-banking User(s).
- Arrange for a personal visit of the company’s Beneficial Owners to the premises of the bank. A bank may accept an online meeting with the Beneficial Owners; however, this depends on the policies of each bank.
- Upon the successful completion of the process, the account details are provided to the company’s officers in order to deposit the minimum amount (as applicable) for the activation of the corporate account.
For individuals and businesses dealing with bank account opening, financial compliance, loan restructuring, or regulatory banking matters, working with experienced Banking Law lawyers in Cyprus can help ensure the process is handled correctly and in line with local requirements.
Requisite Information
In order to examine an application for the opening of a corporate bank account, a bank will require information including, but not limited to:
- Passport details of Related Parties
- Taxpayer Identification Number of the Company and FATCA classification
- Main business activities
- Financial information (i.e. Expected Annual Debit Turnover and Annual Credit Turnover)
- Purpose / reason of application for opening the account
- Nature of the transactions to be performed
- Banking services needed (i.e. Debit Card and Internet Banking)
Requisite Documentation
For the Beneficial Owners and every Related Party (as defined above) who is an individual:
- Legible certified true copy of passport (inclusive of photograph, signature and expiry date)
- Proof of residential address / Utility Bill (not older than six months)
- Bank Reference Letter (not older than six months)
- Detailed CV (Resume)
- Documents proving source of income / fund (including, without limitation, tax declaration, payslips and/or bank statements)
For the company applying for the opening of a corporate bank account and every Related Party (as defined above) which is a legal entity:
- · Extracts from the National UBO Registry (referring to the Beneficial Owners and the extent of their rights)
- · Memorandum and Articles of Association
- · Certificate of Incorporation; Certificate of Shareholders; Certificate of Directors & Secretary; Certificate of Registered Office; and Certificate of Good Standing
- · Recent Financial Statements (where applicable)
- · Trust deed(s) between the beneficial owner(s) and the registered shareholder(s) acting as nominees (where applicable)
- · Ownership/group structure leading to the beneficial owner (diagrammatical or otherwise)
- · Documents proving source of income / fund (including, without limitation, tax declaration and/or bank statements)
ADDITIONAL REMARK(S)
· All documents need to be certified (by a Notary Public, Embassy or Consulate or High Commission or Apostille) as a Certified True Copy of the original version. The passport of an applicant (in the case of a personal bank account) and/or of a company’s beneficial owner (in the case of a corporate bank account) may be verified by the competent bank officer upon the former’s visit to the premises of the bank and upon the presentation of the original version.
All documents must be either in English or Greek language. If not, an official translation is required.
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