CYPRUS Law and Practice Contributed by: Agathi Zervou and Maya Athanatou, George Z. Georgiou & Associates LLC
Statutory Exceptions Section 29 (2) of the Banking Law provides that bank - ing secrecy does not apply when: • the information is provided to the police under the provisions of any law, or to any other duly author - ised public officer or to the court during the investi - gation or prosecution of a criminal offence; • the customer gives written consent; • legal proceedings exist between the bank and customer; • a garnishee order has been served; or • disclosure is necessary for reasons of public inter - est or protection of the bank’s interests. Civil Fraud Proceedings – Norwich Pharmacal Orders Fraud victims pursuing civil claims can apply for Nor - wich Pharmacal orders to compel disclosure. The court will grant such orders where three conditions are satisfied: • first, a wrong has been committed or is arguably being committed; • second, the order is necessary to enable proceed - ings against the wrongdoer; and • third, the bank has been involved in facilitating the wrong and can provide information to identify or pursue the wrongdoer. This mechanism has proven particularly effective in fraud cases, allowing claimants to trace misappropri - ated funds and identify perpetrators who might oth - erwise remain hidden behind banking confidentiality. Public Interest Principle Cypriot courts have consistently held that the pub - lic interest in combating fraud overrides banking confidentiality. When fraudulent conduct is alleged, whether in criminal or civil proceedings, the principle of public interest takes precedence over the confiden - tial relationship between bank and customer.
Courts have made clear that individuals cannot shield themselves from legitimate fraud investigations by invoking banking secrecy. An accused fraudster can - not take refuge in the bank-customer relationship to prevent disclosure that would expose wrongdoing. 7.3 Crypto-Assets Cyprus has not yet established a comprehensive leg - islative framework specifically for crypto-assets. At present, the primary domestic regulation in this area is the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, which includes provisions governing Crypto Asset Services Providers. In addition, as an EU member state, Cyprus is directly subject to the Markets in Crypto-Assets (MiCA) Regu - lation (EU) 2023/1114. While the Markets in Crypto- Assets Regulation (MiCA) introduces a broad classifi - cation of crypto-assets, it does not address questions concerning their proprietary status. There is currently no Cypriot case law expressly con - firming whether crypto-assets are treated as property. However, given that Cyprus courts apply English com - mon law and equitable principles pursuant to Section 29 of the Courts of Justice Law 14/1960, it is highly likely that they would follow the approach adopted by English courts, which recognise crypto-assets as property ( Tulip v Van der Laan [2023] EWCA Civ 83). On this basis, it should be possible to obtain interim relief such as disclosure orders to obtain information about relevant transactions against a cryptocurrency exchange, provided the usual legal thresholds are met.
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