As from the 27th of November 2009, the provision of payment services in the Republic of Cyprus is regulated by the Payment Services Law of 2009 (as subsequently amended), and by the Payment Institutions and Access to Payment Systems Directive of 2009, which was issued by the Central Bank of Cyprus by virtue of the powers vested in it under the provisions of these Laws.
In accordance with the provisions of the aforementioned legislation the Central Bank of Cyprus is designated as the competent authority responsible for:
(a) granting of authorisation to provide payment services to companies which are registered and have their head office in the Republic of Cyprus,
(b) the issuance of rules concerning the access of payment service providers to payment systems operating in the Republic of Cyprus, as well as the terms and conditions under which they may participate therein,
(c) the supervision and monitoring of compliance with the provisions of the Payment Services Laws of 2009 and 2010 concerning:
(i) the authorisation of payment institutions, and
(ii) the transparency of the conditions, the terms, the rights and obligations governing payment services
(d) the investigation of complaints submitted by payment services users or by other interested parties, as well as dispute resolution concerning the rights and obligations stemming from these Laws, and
(e) the revocation or the suspension of the authorisation of a payment institution if it has been ascertained that it obtained its authorisation through false representations, or other irregular means. Moreover, the Central Bank of Cyprus has the power to impose administrative penalties on payment institutions, if it has been ascertained that they contravened any of the provisions of the relevant legal framework.
By exercising the right of establishment or the freedom to provide services, the authorised payment institutions can establish and/or operate payment services business in other member states through passporting. Conversely, by exercising the right of establishment or the freedom to provide services, payment institutions authorised by the competent authorities of other member states are entitled to establish payment services business in the Republic of Cyprus.
Once a payment institution commences operations in Cyprus, it is requested to provide statistics in relation with the payment services provided. Click here to access the relevant statistical templates: Payment Institutions-Service 5 Template, Passported Payment Institutions - Service 5, Payment Payment Institutions - Service 6.
For more detailed information, the Payment Services Laws of 2009 and 2010 and the Payment Services and Access to Payment Systems Directive of 2009 can be accessed through these links. Please note that the Law is only available in greek.