From Cyprus: Shell Companies and Cyprus Banking

Source: Nakis Kyprianou - UnityFour Cyprus Ltd., a collaborating firm of Andersen Global

Cyprus Central Bank (CBC) issued a circular on November 2, 2018 on shell companies that will help eliminate suspicious transactions and further strengthen banks’ anti-money laundering (AML) practices.

The circular defines a shell company as an entity that has no physical presence other than a mailing address, no established economic activity in the country of incorporation, or has little to no independent economic value. Not defined as shell companies are holding companies of entities engaged in legitimate businesses and that have identifiable ultimate beneficial owners.

The circular also requires from Cyprus Banks to carefully review their existing banking relationships and encourages them to refrain from engaging in and or renewing any existing business relationships with shell companies.