• Cyprus
    No Bank Accounts for Shell and Letter Box Companies

    By B2B Lateral Thinking Solutions

    15-06-2018

    The Central Bank of Cyprus has communicated its intention to incorporate the definition of shell/letter box company in the forthcoming revision of the Directive for the Prevention of Money Laundering and Terrorist Financing.

    The term "shell company" shall refer to a non-publicly traded, limited liability company or any other business entity that fulfils any one of the following criteria:

    1. has no physical presence ίn its country of domicile (other than a mailing address);
    2. has no established economic activity, little to no independent economic value and no documentary proof to the contrary;
    3. ίs registered in a jurisdiction where companies are not required to submit to the authorities independently audited financial statements;
    4. has a tax residence ίn a jurisdiction recognised as a 'tax haven' or no tax residence whatsoever.

    Exemption for true holding companies, asset holding companies (e.g. real estate and ships) as well as companies with a demonstrable purpose of existence e.g. facilitating currency trades, asset transfers, corporate mergers, etc shall also be included in the definition.

    Related Article: Cyprus joins the aversion to shell 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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