After the banks in Cyprus closed on March the 16th, (adult) companies as well as other branches (for example the online casinos) were stressed out. Why? a lot of companies in these markets have an “offshore” account in Cyprus. The tax climate also attracted large deposits from abroad, especially Russia. Cyprus was known as an offshore haven with tolerant business rules.
So the banks is Cyprus were closed for nearly two weeks, but “luckily” the Cypriot government was forced to accept a EU rescue package to avoid complete bankruptcy, meaning some of the monies in those account will come back… pffff
A lot of money had already left Cyprus electronically, but today, bank staff started working very early while cash was being delivered by armored trucks, and small queues of people formed at bank branches and atm machines in the capital, closely watched by uniformed security guards.
Now, of you think you can withdraw your all your monies today from Cyprus think again… if you have over 100 k in Cyprus, you should scratch your head now.
The ministry of Finance Ministry limited withdraws with:
- no more than €300 per day and banned the cashing of cheques.
- The island’s central bank will review all (commercial) transactions of €5,000 or more
- It will scrutinize transactions of €200,000 or more on an individual basis. People leaving Cyprus may only carry €1,000 in cash
- While big depositors will lose money, the authorities say deposits up to €100,000 will be protected.
- Passengers leaving Cypriot airports were subject to extra searches.
- Notices at Larnaka Airport warned travellers of the new restrictions and officers had orders to confiscate cash above the €1,000 limit.
Funny fact: With just 860,000 people, Cyprus has about €68 billion in its banks, I guess that has to be one rich island, or not???
Well I think there is a lesson to be leaned here; if you try to avoid taxes… you can get screwed in the ass big time…