Banking licence application process is as follows:
A credit institution must obtain authorization from the Central Bank of Cyprus before commencing operations in the Republic or abroad.
(ii) A credit institution established in the Republic must have its registered office as well as the office of its central administration in the Republic of Cyprus;
(iii) Credit institutions shall have their head office in the Member State which issued their authorization and in which they are actually conducting their business.
OVERVIEW OF THE PROCESS
(i) The initial capital is not less than one million Euros (€ 1,000,000);
(ii) The Central Bank shall inform the Commission and the European Banking Authority of the reasons for making use of this option.
At least two (2) Executive Directors who effectively direct the business of the Credit Institution are required.
Phase A) The pre-application phase/conditions to be met:
(1) The credit institution shall disclose the identity of the shareholders or members, whether direct or indirect, natural or legal persons who hold a qualifying holding and the percentage of such holding, or, in the absence of qualifying holdings, the identity of the twenty (20) largest shareholders or members.
In determining whether the eligibility criteria are fulfilled, the voting rights provided for in Sections 28, 29 and 30 of the Transparency Requirements Law shall be taken into account, as well as the conditions for their aggregation provided in the Articles 34 and 35 of the said Law.
(2) The Central Bank shall be convinced of the suitability of shareholders or members, in particular when the criteria set out in Article 17A (1) are not fulfilled.
(3) Τhe existence of any close links between the Applicant and other natural or legal persons shall not block the effective exercise of the CBC’s supervisory mission.
(4) Laws, regulations or administrative provisions of a third country to which one or more natural or legal persons are subject, with which the credit institution has close links or difficulties with the application of those laws, regulations or administrative provisions, shall not block the effective performance of the CBC’s supervisory mission.
(5) The Credit institutions shall provide the Central Bank with the information it so requests in order to be able to monitor on a continuous basis the compliance with the conditions laid down in the Article 4 of the Law no. 66(I)/1997.
Phase B) The application phase:
The application form must be submitted-
(1) by or on behalf of the Applicant to the Central Bank and
(2) shall be accompanied by
Phase C) Licensing:
(i) The members of the Management Body have a good reputation and sufficient knowledge, qualifications and experience to perform their duties;
(ii) The overall composition of the management body reflects a sufficiently wide range of experiences, and
(iii) The members of the Board of Directors meet the requirements set out in the Assessment of the Capacity and Eligibility of Board Members and Directors of Licensed Credit Institutions Directive of 2014.
(i) is a subsidiary of a credit institution authorized in the other Member State; or
(ii) is a subsidiary of the parent credit institution authorized in the other Member State; or
(iii) is controlled by the same natural or legal persons who audit a credit institution authorized in the other Member State.
(a) is a subsidiary of an insurance company or investment firm authorized in the Union, or
(b) is a subsidiary of the parent insurance company or investment firm authorized in the European Union; or
(c) is controlled by the same natural or legal persons who control an insurance company or investment firm authorized in the European Union.