A. INTRODUCTION
When servicing international investors doing business through Cyprus it is of utmost importance to have in place the right banking network that will able to serve and support the business needs of these investors. Banks should be able to understand the general principles of tax planning and international tax structuring so that they will perform their services in an efficient and effective manner.
In this brochure we analyse the banking services offered by our firm that enable the management and control of our clients' banking activities in Cyprus and abroad and we include an indicative list of the banks with whom we cooperate.
B. BANKING SERVICES OFFERED BY OUR FIRM
The banking services offered by Kinanis LLC are generally broken down into two main functions:
I. Opening of bank accounts
II. Management and administration of bank accounts
Each function is administered by different group of people so that experience and expertise is accumulated therefore offering the best possible service to our clients.
I. Opening of bank accounts
Throughout the 33 years of operation we have built up a solid relationship with banks operating both in Cyprus but also in other reputable banking jurisdictions.
We can assist our clients with the opening of corporate and personal bank accounts both in Cyprus and overseas, as well as assisting with any other banking related function such as obtaining internet access to the accounts and arranging the issuance of credit cards.
In sections C and D below we list the names of the banks with whom we have a good cooperation and can assist our clients in opening banks accounts.
II. Management and Administration of bank accounts
Our firm can manage the bank accounts on behalf of the clients – irrespective of whether we have assisted in opening the specific bank account or not- by providing day to day assistance with regards to the day to day operations of the bank account.
Managing the bank account of a Cyprus company from Cyprus is of an imperative importance, as it significantly enhances the establishment of substance in Cyprus and is a very good indication that the management and control of the company is exercised in Cyprus.
- Bank signatory services
We also provide bank signatory services where we allocate six persons from our office to be the signatories of the bank account. For security reasons and for the prompt execution of payments, any two of the six signatories will have authority to sign. In such cases, the preparation of relevant Banking indemnity letter along with sample of payment instruction and code table list between our office and the client authorizing the bank signatories to act on behalf of the beneficial owner of the company is necessary. The name of the authorised person who will be giving relevant payment instructions for execution is required in order to prepare the relevant documentation. Each time a request is received for the execution of a payment, the authorized person must complete and sign the sample of fax instructions and also indicate a code from the list in numerical order.
All payment instructions must be faxed or emailed to our Banking Department. Kindly note, that all payment instructions received by e-mail must be password protected for security reasons. Once received, transactions will be verbally confirmed by KINANIS LLC authorized persons.
The above is our office policy in situations when we are appointed signatories of bank accounts in order to protect the best interest of the company.
- Mailing address services
Banking correspondence received from the Bank for the company can be kept in our files. We can assist in mail forwarding of the banking correspondence according to each client's requirements
C. BANKS WITH WHOM WE COOPERATE IN CYPRUS
Banking in Cyprus is regulated by the Central Bank of Cyprus and is fully harmonized with EU legislation and directives.
The local banking sector has faced major challenges over the last few years, especially following the write-down of Greek debt, which resulted in heavy economic losses and severely damaged confidence in the banks. However, the majority of banks on the island have been relatively unaffected by the economic storm as out of nearly 40 banks operating in Cyprus only two local banks were forced to undergo severe restructuring.
Recent credit rating upgrades and positive bank results have marked an end to prolonged uncertainty in Cyprus' banking sector. Today, the situation is more stable and trust in the country's banks has been further boosted thanks to a successful result on the European Central Bank's stress tests and the relaxation of all domestic capital controls.
The banks mentioned in this section are those with whom our office has a long standing cooperation. Usually, these banks for the opening of bank accounts accept certified copies of the original documents by our office as an Approved Introducer. According to the latest Central Bank of Cyprus directive, Cyprus Banks require first, within the period fo three months, of the activation of the bank account a personal or teleconference meeting, to be arranged with the Beneficial Owner always depending from the bank. Secondly the submission Audited or Management Accounts for the last two years is required too.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
