SETTING UP AND MANAGING BANK ACCOUNTS

At Parparinos Milonas Corporate and Legal, we take pride in our close ties and cooperation with the Cyprus Banking Sector which inevitably enables us to provide a vast range of banking services with the major Cyprus Banks. Offshore Banking is an additional service which is provided for many major destinations.

Our Services include:

  • Opening of personal and corporate bank accounts
  • Opening of escrow accounts
  • Opening of e-wallets

It is important for any company in need to receive payments and enable its flow of funds, to set up a bank account. To do this, the first step is finding the right bank as it is the element which will influence the way the payments will be received as well as the way you will assist your clients in making those payments.

To find the right bank, a comparison of banking institutions is imperative in order to find out about their services and fees and assess which one is more suitable for a certain line of business. It is highly recommended to seek professional assistance to conduct this search, as it will make it easier to narrow down the candidates and make the right choice.

Regarding bank accounts in Cyprus, it should be noted that on 14 June 2018 the Central Bank of Cyprus issued a circular to credit institutions that it regulates, advising them against opening new bank accounts or continuing existing accounts with companies that are regarded as so-called ‘shell’ or ‘letter-box’ companies. These guidelines are due to be incorporated into the Central Bank’s Anti-Money Laundering Directive in the near future. The guidelines stipulate that trading companies with no effective place of business and management, and hence no substance, will not be permitted to maintain bank accounts in Cyprus.

These restrictions do not apply to holding companies which own investments in shares, intangible or other assets, including real estate or ships, companies undertaking group financing activities or acting as group treasurer or companies established to facilitate currency trades, asset transfers or corporate mergers, provided that their beneficial ownership is identifiable and they demonstrate that they are engaged in legitimate business. Banks may opt to engage in a business relationship with a shell-company client, but must be able to justify their decision and record this justification in the client file. They will need to follow a risk-based approach in dealing with such clients.

Furthermore, before making a final decision, a variety of corporate bank account models should be assessed and it should be taken into consideration that the chosen type of corporate bank account should cover all payment processing needs. It should be noted that by finding the right bank, a company’s reputation is also improved as the payment processing will be done in a secure manner and at a high level of service.

It’s a known fact that in today’s globalized financial and commercial world and with the raging war going on against offshore banking centres and tax optimization structures, having a ‘top notch’ bank and an efficient bank account has become a tedious task.

In an effort to provide high quality banking to our International clientele, our Firm prides itself in its exquisite relations with banks both in Cyprus and Worldwide and has officially signed introducer agreements with various chosen banks.

By opening a Corporate Bank Account, you will have access to all the necessary facilities which are essential for your international operations such as swift transfers, multi-currency, zero tax on a bank account on interest earned on deposits, digipass, no minimum deposit terms, debit or credit card allowing cash withdrawals from ATM machines worldwide.

It is our Firm’s policy and for management and control purposes, one of our Partners has full signatory rights and online banking access. This means that only our firm shall be able to execute payments following the client’s instructions. It goes without saying that the clients will be given viewing access which permits them to log-in to the e-banking systems and view all relevant details regarding their accounts, such as the transactions, the statements and the balances.

The good news is that you do not need to be physically present in order to open a Bank Account due to the ability to take advantage of our introducer’s status, therefore the need for travel to and from for visiting the bank is not necessary. However, it is the policy of the vast majority of banks to hold an audio-visual call with the client for identification purposes.

Parparinos Milonas Corporate and Legal Consultants can assist you with finding the right bank and setting up the best suited account for your company’s needs. Whichever type of bank account you choose, our specialized personnel is in place to guide you through the process.

Moreover, our services include management and controlling of the bank accounts with day-to-day communication, preparation of necessary corporate documentation required as supporting evidence for banking transactions, regular meetings and negotiations with the banks.

Our banking administration services also include:

  • Direct contact with all the banks in Cyprus and worldwide concerning all banking related matters.
  • Reviewing bank accounts.
  • Handling of online banking facilities.
  • Execution of online and manual payments.
  • Applying for banking products.
  • Receiving feedback from banks about new products and services.

Antonis Michael
Antonis Michael currently holds the position of Banking Officer in our Firm and acts as a liaison between the Firm, its customers and the...