Economic Director: Avgi Chrysostomou-Lapathiotis
The Directorate of Financial Stability's main mission is to handle the whole regulatory spectrum of the economy's financial sector, i.e., banking, capital market, and insurance companies, with the aim of alignment to the EU acquis communautaire, modernization, development, or enhancement of best practices. The ultimate objective is to continuously monitor the financial sector and contribute, together with the supervisory authorities, to ensuring financial stability.
2. Banking Sector
It is essential to support a well-regulated, effectively supervised, competitive, and stable banking sector that protects the interests of consumers and small and medium-sized enterprises.
The main activities of the Directorate in the banking sector focus on the following:
3. Capital Market Sector
The capital market plays a crucial role in transferring financial resources, providing finance to businesses and start-ups, generating sufficient specialization in this economic sector, and providing growth by offering services both in Cyprus and abroad.
The main activities of the Financial Services Directorate in this area include the following:
4. Financial Stability
Financial stability includes monetary stability, financial stability on the issue of payment systems, and the orderly functioning of financial markets in which markets function smoothly during significant shocks.
Within the context of ensuring financial stability, the main activities of the Directorate are the following:
5. Combating Money Laundering and Terrorism Financing
Money laundering and terrorist financing negatively affect a country's financial system and undermine stability. Therefore, it is essential for Cyprus, as a small, open economy, to be actively involved in preventing the use of its financial system for criminal activities.
Cyprus plays a leading role in developing policies for anti-money laundering and financing terrorism at the international level.
To achieve the above target, the main activities of the Directorate focus on the following:
The main International Financial Institutions within the scope of responsibilities of the Directorate are the following:
Main Directorate concerns are as follows:
7. Sanctions Implementation
The Law on the Implementation of the Provisions of United Nations Security Council Resolutions or Decisions (Sanctions) and Council of the European Union Decisions and Regulations (Restrictive Measures) of 2016 (58(I)/2016), governs the implementation of sanctions in the Republic of Cyprus.
Based on the Decision by the Council of Ministers (no 93.265), the Ministry of Finance assumed the role of coordinator for the implementation of the sanctions. In this context, it has been authorized, among other things, to:
a) Receive information on the measures taken by the competent authorities of the Republic of Cyprus by Law 58(I)/2016 to ensure the implementation of the sanctions and restrictive measures within its field of competence.
b) Gather information and data on the (asset-freezing) measures in the Republic of Cyprus.
c) Transmit information to the Advocate General on the possible commission of criminal offenses related to the violation of sanctions by EU and third-country authorities.
d) Forward inquiries received from foreign authorities relating to implementing sanctions to the competent authorities of the Republic of Cyprus.
The Directorate also has the following committees:
1. Advisory Committee on Economic Sanctions (SEOK)
The Commission examines, among others, the requests,
(α) by credit institutions (for their customers, natural or legal persons) listed in Annex I of Council Regulation (EU) No 269/2014 and the recent Regulations amending it, for the exclusion and release of specific frozen resources or funds, under conditions.
(b) by financial services professionals to authorize the provision of services to persons or entities affected by the application of UN Security Council economic sanctions and European Union restrictive measures.
(c) concerning the incorrect freezing of funds in credit institutions.
(d) for derogation from the European Union's restrictive measures regarding accepting deposits over €100,000.
2. Sanctions Implementation Unit (ΜΕΚ)
Examines requests submitted by interested persons (e.g., Cypriot citizens, companies, law/auditing firms, and financial institutions) regarding authorizations/approvals provided for by the relevant UNSC resolutions and EU regulations concerning financial matters.
More details can be found through the links below:
Tel.: +357 22601172
Fax: +357 22602748