WORLD TRADE
ORGANIZATIONGATS/SC/25/Suppl.2/Rev.1
18 November 1999
(99-5015)
Trade in Services
CYPRUS
Schedule of Specific Commitments
Supplement 2
Revision
(This is authentic in English only)
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This text replaces document GATS/ SC/25/Suppl.2 on Financial Services.CYPRUS REVISED  SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market  Access Limitations on National Treatment Additional
Commitments
7. FINANCIAL SERVICES
1. It is understood that this schedule should be read in conjunction with the horizontal commitments applicable to all sectors/s ubsectors submitted by Cyprus in
its Schedule of Specific Commitments to the GATS and with the List of Article II (MFN) Exemptions.
2. The following general conditions and qualifications would apply even where no limitations or conditions are stated in the sch edule:
(i) Consideration of national security and public policy objectives;
(ii) This schedule does not in any way pertain to services supplied in the exercise of government functions.  Also, it does not affect measures pertaining to
trade in goods which may constitute inputs to a scheduled service or other services.  In addition, limitations on market access  or national treatment in
respect of services which may constitute inputs to or be used to supply a scheduled service, shall continue to apply.
3. The laws and regulations mentioned in this schedule should not be construed as an exhaustive reference to all laws, and regul ations governing the financial
sector.  The transfer, for example, of information containing personal data, bank secret or any business secret is not allowed.   Such transfer is subject to
domestic laws on protection of confidentiality of information of banks' customers.  Furthermore, it is noted that non-discrimin atory qualitative measures
pertaining to technical standards, public health and environmental considerations, licensing, prudential consideration, profess ional qualifications and
competency requirements have not been listed as conditions or limitations to market access and national treatment.
4. Unregulated financial services and products and the admission to the market of new financial services or products, may be sub ject to the existence or the
introduction of a regulatory framework aimed at achieving the objectives indicated in Article 2(a) of the Financial Services An nex.
5. Due to exchange controls operative in Cyprus:
- residents are not permitted to purchase banking services which may involve transfer of funds abroad, while they are physically  abroad;
- loans to non-residents/foreigners or non-resident controlled companies require approval from the Central Bank;- acquisition of securities by non-residents also requires permission from the Central Bank;- dealings in foreign currency may be carried out only through banks  which have been accorded "Authorized Dealer" status from th e Central Bank.GATS/SC/25/ Suppl.2/Rev.1
Page 2GATS/SC/25/ Suppl.2/Rev.1
Page 3Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Acce ss Limitations on National Treatment Additional
Commitments
. Insurance and insurance
related services
Direct Insurance
(a) Life Insurance Services (1) No insurer can offer life insurance services
in the Republic of Cyprus unless licensed
as an insurer by the Superintendent of
Insurance, in accordance with the InsuranceCompanies Laws.(1) None
(2) None (2) None
(3) No insurer can operate in or from within
the Republic of Cyprus unless so
authorized by the Superintendent of
Insurance, in accordance with the InsuranceCompanies Laws.(3) None
Foreign insurance companies can operate
in the Republic of Cyprus through theestablishment of a branch or an agency.The foreign insurer must have been
authorized to operate in his country of
origin before authorized to establish abranch or agency.
Participation of non-residents in insurancecompanies, incorporated in the Republic of
Cyprus, requires the prior approval of the
Central Bank.  The extent of foreignparticipation is determined on a case bycase basis in accordance with economic
needs.GATS/SC/25/ Suppl.2/Rev.1
Page 4
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Acce ss Limitations on National Treatment Additional
Commitments
(4) Unbound (4) None
(b) Non-Life Insurance Services
(CPC 8129 other than 81299)(1) No insurer can offer non-life insurance
services (except Marine, Aviation andTransit) in the Republic of Cyprus unlesslicensed as an insurer by the
Superintendent of Insurance, in accordance
with the Insurance Companies Laws.(1) None
(2) None (2) None
(3) No insurer can operate in or from within
the Republic of Cyprus unless soauthorized by the Superintendent of
Insurance, in accordance with the Insurance
Companies Laws.(3) None
Foreign insurance companies can operate
in the Republic of Cyprus through theestablishment of a branch or an agency.The foreign insurer must have beenauthorized to operate in his country of
origin before authorized to establish a
branch or agency.
Participation of non-residents in insurancecompanies, incorporated in the Republic ofCyprus, requires the prior approval of the
Central Bank.  The extent of foreign
participation is determined on a case bycase basis in accordance with economic
needs.
(4) Unbound (4) NoneGATS/SC/25/ Suppl.2/Rev.1
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Acce ss Limitations on National Treatment Additional
Commitments
(c) Reinsurance and retrocession (1) Any foreign reinsurer approved by the
Superintendent of Insurance (on prudentialcriteria) may offer reinsurance orretrocession services to insurance
companies incorporated and licensed in
Cyprus.(1) None
(2) None except as indicated in the horizontal
section(2) None
(3) No company can operate as a reinsurer
within the Republic of Cyprus unless soauthorized by the Superintendent of
Insurance.(3) None
Investment by non-residents in reinsurance
companies requires the prior approval of
the Central Bank.  The share of foreign
participation in the capital of localreinsurance companies is determined on acase-by-case basis.  Currently there is nolocal reinsurance company.
(4) Unbound. Natural persons are not
authorized to provide reinsurance services.(4) Unbound. Natural persons are not authorized
to provide reinsurance services.GATS/SC/25/ Suppl.2/Rev.1
Page 6
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Acce ss Limitations on National Treatment Additional
Commitments
B. Banking
1. It is a statutory requirement and it is applied on a non-discriminatory manner that banks offering services in the Republic o f Cyprus must be legal entities.  Legal
entities include branches of foreign banks/financial institutions which are registered in Cyprus.
2. Direct or indirect owne rship or voting rights in a bank by a person and his/her associates may not exceed 10 per cent unless with the prior written approval of the
Central Bank.
3. Further to the above, in the three existing local banks listed  in the stock exchange, direct or indirect shareholding or acqu isition of stake in their capital by foreign
persons is restricted to 0.5 per cent per individual or organization and 6.0 per cent collectively.
(a) Acceptance and deposits and
other repayable funds from the
public (CPC 81115-81119)(1) Unbound/only legal entities licensed by the
Central Bank may offer banking services in
the Republic of Cyprus.(1) Unbound
(b) Lending of all types
(CPC 8113)(2) Unbound-Residents of Cyprus require
permission from the Central Bank inconformity with the Exchange Control Law
for borrowing in foreign currency or
abroad, for placing funds abroad or forobtaining banking services that require
export of funds.(2) Unbound
(c) Financial leasing (CPC 8112)
(d) All payments and money
transmission services carriedout by financial institutions
(CPC 81339)
(e) Guarantees and commitments
(CPC 81199)(3) For new banks the following requirements
apply:
(a) A licence is required from the Central
Bank for the carrying out of bankingbusiness.  The Central Bank in
granting a licence may apply an
economic needs test.(3) None once established and licensed.GATS/SC/25/ Suppl.2/Rev.1
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Acce ss Limitations on National Treatment Additional
Commitments
(f) Foreign exchange dealing
(CPC 81333)(b) Branches of foreign banks must be
registered in Cyprus under the
Companies Law and licensed underthe Banking Law.
(4) Unbound(4) Unbound.  For bank foreign employees
residence and work permit is required.
C. Securities
Trading for own A/c or for
A/c of Customers intransferable securities.
Securities broking
(CPC 81321)(1) None except as indicated in the horizontal
section
(2) None except as indicated in the horizontal
section(1) None except as indicated in the horizontal
section
(2) None except as indicated in the horizontal
section
(3) Only members (brokers) of the Cyprus
Stock Exchange can undertake businesspertaining to securities brokerage inCyprus.  Firms acting as brokers must only
employ individuals who can act as brokers
provided that they are appropriatelylicensed. Banks and Insurance companiesmay not undertake brokerage business.However their subsidiary brokerage firms
may do so.(3) A brokerage firm may only be registered as a
member of the Cyprus Stock Exchange if ithas been established and registered inaccordance with the Companies Law of
Cyprus.
(4) Individuals, whether acting alone as
brokers or employed by broker firms asbrokers, are required to meet the licensingcriteria for this purpose.(4) None except as indicated in the horizontal
section
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