As from the 27^th of November 2009, the provision of payment services in the Republic of Cyprus is regulated by the Payment Services Law of 2009 (as subsequently amended), and by the Payment Institutions and Access to Payment Systems Directive of 2009, which was issued by the Central Bank of Cyprus by virtue of the powers vested in it under the provisions of these Laws.

In accordance with the provisions of the aforementioned legislation the Central Bank of Cyprus is designated as the competent authority responsible for:

(a) granting of authorisation to provide payment services to companies which were registered and have their head office in the Republic of Cyprus, excluding certain categories of payment services providers such as credit institutions, electronic money institutions, and co–operative credit societies which are licensed by competent authorities of member states.  Also excluded are member states, or their regional or local authorities when not acting in their capacity as public authorities and others, which may legitimately provide payment services throughout the Community,

(b) the issuance of rules concerning the access of payment service providers to payment systems operating in the Republic of Cyprus, as well as the terms and conditions under which they may participate therein,

(c) the supervision and monitoring of compliance with the provisions of the Payment Services Laws of 2009 and 2010 concerning:

(i) the authorisation of payment institutions, and

(ii) the transparency of the conditions governing payment services, or of the amendment or termination of relevant contracts, the currencies in which payment transactions should be executed, the sharing of the costs of transactions between a payer and a payee, the rights and obligations associated with the provision and use of payment services and the exceptions that can be allowed for micro payments in respect to payment services provided:

· in other member states by authorised from the Central Bank of Cyprus payment institutions, banks and electronic money institutions and

· in the Republic of Cyprus by authorised from other member states payment institutions, banks and electronic money institutions which are not co-operative societies,

(d) the investigation of complaints submitted by payment services users or by other interested parties, including consumer associations, regarding possible infringements of the Payment Services Laws by payment institutions placed under its supervision. Furthermore, the Central Bank facilitates dispute resolution concerning the rights and obligations stemming from these Laws, and

(e) the revocation or the suspension of the authorisation of a payment institution if it has been ascertained that it obtained its authorisation through false representations, or other irregular means, or it does not comply with, or systematically violates the provisions of the Payment Services Laws, or continuance of its operation would adversely affect the stability of a payment system. Moreover, the Central Bank of Cyprus has the power to impose administrative penalties on payment institutions, and/or their directors, and/or their managing directors, and/or their managers, if it has been ascertained that they contravened any of the provisions of these Laws, and/or of any directives, circulars, and/or notices which were issued by the Central Bank of Cyprus by virtue of the powers vested in it under the provisions of these Laws.

By exercising the right of establishment or the freedom to provide services, the authorised by the Central Bank of Cyprus payment institutions can establish and operate payment services business in other member states. In such cases, payment institutions should inform the Central Bank of Cyprus accordingly so as to proceed with the arrangements provided by the Payment Services Laws with the competent authorities of the host member state. Conversely, by exercising the right of establishment or the freedom to provide services, payment institutions authorised by the competent authorities of other member states are allowed to establish payment services business in the Republic of Cyprus. In these cases, prior notification of the Central Bank of Cyprus by the competent authorities of their home member states is required.

The following register provides a list of the payment institutions authorised by the Central Bank of Cyprus, their branches, their agents, and full details regarding their licenses. Moreover, it provides details regarding the authorised by other member states payment institutions which, by exercising the right of establishment or freedom to provide services, are allowed to provide payment services in the Republic of Cyprus.

For more detailed information, the Payment Services Laws of 2009 and 2010 and the Payment Services and Access to Payment Systems Directive of 2009 can be accessed through these links.  Please note that the Law is only available in greek.