Andreas Kostouris, spokesperson for the Cyprus Banks Association, appeared on the Mesimeri Kai Kati programme to discuss upcoming changes to banking charges and potential taxation of bank windfall profits.
Kostouris explained that each bank sets its pricing policies individually, which is why they vary. He highlighted that starting from 9 January, instant payments will become available. This means money transfers and remittances will be processed 24/7 within 10 seconds, at minimal cost as mandated by European regulations. For one bank, he noted, there are currently no charges for transfers under €1,000, and this will remain the case with instant payments.
He described the changes as a move towards more accessible transactions, faster processing, and enhanced security as managed by the banks.
Kostouris also clarified that a widely circulated claim about a €1.50 charge for each electronic transaction is false.
In conclusion, he stated that “banks are not pocketing profits or distributing dividends to shareholders, except for one bank last year and this year, which received special approval from the European Central Bank. All other banks do not pay dividends.”
Central Bank of Cyprus guidance on instant payments regulation
The Central Bank of Cyprus (CBC) has reminded all payment service providers of the deadlines under Regulation (EU) 2024/886 (Instant Payments Regulation):
- By 9 January 2025, banks must be able to receive instant payments.
- By 9 October 2025, banks must be able to send instant payments.
- By 9 April 2027, payment institutions and electronic money institutions must be able to both send and receive instant payments.
Payment initiation channels
By 9 October 2025, payment service providers must offer customers the ability to initiate instant payments using the same channels available for traditional credit transfers.
Fees
By 9 January 2025, charges for instant payments must not exceed those for traditional credit transfers. Additional fees may be imposed for extra services.
Customer checks and EU sanctions
By 9 January 2025, payment service providers must verify at least once a day whether any of their customers are individuals or entities subject to targeted financial restrictive measures under EU sanctions lists.
Beneficiary verification
By 9 October 2025, payment service providers must offer customers a service to verify the beneficiary of a credit transfer before the payment is made.
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