Commercial Law: Licencing of Payment Institutions in Cyprus

The provision of payment services in the Republic of Cyprus is regulated by legislation and Directives issued by the Central Bank of Cyprus.

 

The legislation designated the Central Bank of Cyprus  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.

For further information relating to the licensing framework for payment services in the Republic of Cyprus contact using [email protected]

Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.