The Introduction of The IBAN
Most European Banks are currently adopting a standard method for recognizing and validating customer account numbers. This method is compliant to ISO 13616 and operates through the use of the International Bank Account Number (IBAN), which is a series of alphanumeric characters that uniquely identify customer accounts held at banks anywhere in the world.
In line with European Banking Practice, and following the Central Bank of Cyprus requirement BoB, Limassol, Cyprus, has allocated since April 1st, 2004 an IBAN number to be applied to all customers' accounts, insuring that this number is used in all banking transactions.
Construction of The IBAN
In Cyprus, the IBAN consists of 28 digits:
The first two alphabetic characters identify the country where the account is held.
- The next two digits are the check digits used to validate the IBAN number.
The 24 numbers of the IBAN that follow comprise the number that identifies the Bank and the Branch where the account is held and the beneficiary’s account number.
- 10% Tax is levied on interest earned on deposits.
- In accordance with the special contribution 2002 law No. 117 (I) for the defense of the Republic, all banking institutions operating in Cyprus are compelled to deduct a special 10% contribution to the defense on interest earned or credited to accounts maintained by Cypriot residents.
- Non-Cypriot residents, who are exempt from the tax contribution, must sign a special declaration (Form IR 18A).
Residents of Cyprus are considered:
Individuals, who reside in Cyprus for a duration of one or more periods, which exceed a total of 183 days during a tax year.
Legal persons whose control and management are practiced in Cyprus.
Services to Individuals and Corporations
Deposit accounts may be opened in all currencies.
Transfers to any country may be effected in all foreign currencies.
Use of SWIFT Transfers: Bank of Beirut s.a.l. is a member of SWIFT and uses SWIFT services for international money transfers. SWIFT stores all messages in two operation centers, one located in Belgium and the other in the USA , where the US authorities may have access to such messages information, including, but not limited to, the personal data required for SWIFT transfers, i.e., the sender's name, account number and full address.
Bank of Beirut has no control over the potential availing by SWIFT to US authorities, of the personaldata of Bank of Beirut’s customers who use SWIFT transfers; and Bank of Beirut cannot be held liable in any manner as a result of such availing and of the loss of confidentiality associated therewith.
By placing an international money transfer order with Bank of Beirut, Bank of Beirut’s customers are deemed to have consented to the above mentioned risks and waived their rights to confidentiality, data protection, and banking secrecy with respect to the above information; otherwise, Bank of Beirut (as any other financial institution which is a member of SWIFT) will not be able to complete their transfer order.
Our Branch offers the following service:
Transactions are available in all currencies.
Identify and determine your company's financial requirements and we shall be most pleased to serve you.
- Letters of Credit.
Letters of Guarantee.
Collections of Documents.
Discount of Commercial Bills.
Discount of Export L/C Acceptances.
Refinancing of L/C Documents.
Advances Against Goods Deposited in Bonded Wharehouse.
Since the accession of Cyprus to the European Union in May 2004, the Exchange Control Law, CAP 199, has been repealed and the Capital Movement Law (Law No. 115 (I) of 2003) came into force. As a result, all exchange control restrictions have been abolished and residents of Cyprus are now allowed to transfer funds, effect payments and deal in foreign currencies, without any limitations.
Accordingly, effective May 1st, 2004, Bank of Beirut s.a.l., Limassol, Cyprus, has initiated all types of banking services in foreign currencies to residents of Cyprus, without any restriction