• Cyprus joins the aversion to shell companies

    By B2B Lateral Thinking Solutions

    08-06-2018

    Following the visit of the U.S. Department of the Treasury Assistant Secretary for Terrorist Financing Marshall Billingslea on 4 May 2018 to Cyprus, a number of things seem to have changed in Cyprus banking.

    Although explicit guidelines from the Central Bank of Cyprus are not yet available, banks

    • are no longer interested in shell companies - new or existing;
    • should maintain a smaller number of business introducers and rely a lot less on them for document processing and due diligence;
    • should review existing accounts and ensure completeness of files, including extensive documentation on their clients' business activity and size and source of their wealth;
    • should identify business activity that relates to Cyprus (eg, use of Cyprus companies, Cypriot Ultimate Beneficial Owners, etc);
    • should avoid difficult to understand corporate structures and the use of nominees;
    • started exiting clients and freezing accounts.

    The pressure is here to stay and the above developments are no news to anyone following the trend. Back in April 2015 we wrote an article about International / Offshore Banking Considerations which today feels like a deja vu!

    Related Article: Cyprus: No Bank Accounts for Shell and Letter Box Companies.

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  • The information provided in this article is for general information purposes only. The information is not intended to be comprehensive or to include advice on which you may rely. You should always consult a suitably qualified professional on any specific matter.

B2B Lateral Thinking Solutions

B2B Lateral Thinking Solutions is a dynamic consultancy operating from Cyprus and servicing private, corporate and institutional clients. Our team of dedicated, passionate and highly qualified professionals assists numerous clients across the EU, Russia and CIS countries. Lateral thinking is not only a name. Lateral thinking defines how we approach problems and our work ethic. We partner up with our clients to uncover solutions through indirect avenues and by employing creative thinking.

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