{"id":31,"date":"2014-09-21T11:33:51","date_gmt":"2014-09-21T11:33:51","guid":{"rendered":"https:\/\/cph-tax.com\/?page_id=31"},"modified":"2015-03-14T06:58:57","modified_gmt":"2015-03-14T06:58:57","slug":"kycaml-2","status":"publish","type":"page","link":"https:\/\/cph-tax.com\/en\/kycaml-2\/","title":{"rendered":"KYC\/AML"},"content":{"rendered":"

After 9\/11 2001, there has been a dramatic change in the way banks, tax advisors, and other professionals work. Among other things, it has been decided that banks and relevant advisors must make sure that the money their clients are in possession of does not come from hard criminality and is not going to be used for hard criminality.<\/p>\n

Therefore, if one is going to establish a trust, a company on Cyprus or open an offshore bank account, one must go through a KYC\/AML analysis. KYC stands for \u201cKnow Your Client\u201d and AML stands for \u201cAnti-Money Laundering\u201d. The KYC\/AML analysis and documentation requirements connected with it often seem very inconvenient and troublesome, but they are unfortunately unavoidable.<\/p>\n

Here is a list of the documents that must be provided:<\/p>\n

    \n
  1. A) The activities in the Cyprus company<\/em><\/strong><\/li>\n<\/ol>\n

    A description in English of the intended activities of the Cyprus company. If the Cyprus company is going to be a holding company, one must indicate which companies the Cyprus company will be a holding company for. In addition, the activities of the companies that the Cyprus company is the holding company for must be described. For the companies that are going to be owned by the Cyprus company, authorized translations of the following documents must be sent in:<\/p>\n

      \n
    1. Deed of foundation<\/li>\n
    2. Certificate of registration<\/li>\n
    3. Official list over managers and those authorized to sign<\/li>\n
    4. List of present shareholders<\/li>\n
    5. Certified copy of passports for all managers in the company<\/li>\n
    6. Certified copy of passports for all persons who are shareholders in the company<\/li>\n
    7. For company shareholders, authorized translated company documents must be sent in<\/li>\n
    8. B) Shareholders in a Cyprus company<\/em><\/strong><\/li>\n<\/ol>\n

      If the future shareholder in the Cyprus company is a person, the following documents must be enclosed for the person:<\/p>\n

        \n
      1. Bank certified copy of passport<\/li>\n
      2. Bank certified declaration of the person\u2019s private address<\/li>\n
      3. Introduction letter from the person\u2019s bank<\/li>\n
      4. Introduction letter from the accountant\/lawyer\/service provider<\/li>\n
      5. CV in English<\/li>\n<\/ol>\n

        Ad. 1. Bank certified copy of passport<\/strong><\/p>\n

        On the passport copy, the bank must write:<\/p>\n

        \u201cHaving seen the individual and the identification documents (passport copy certified the 10. December 2007), I hereby certify this is a true copy and the photograph is a reasonable likeness.\u201d<\/p>\n

        Then the bank must stamp and sign the passport copy.<\/p>\n

        Ad. 2. Bank certified declaration of the person\u2019s private address<\/strong><\/p>\n

        The bank must confirm in writing the person\u2019s private address.<\/p>\n

        Ad. 3. Introduction letter from the person\u2019s bank<\/strong><\/p>\n

        The bank must write a letter to whoever is going to form the Cyprus company and write for example:<\/p>\n

        \u201cCopenhagen Legal<\/p>\n

        12 Kennedy Avenue<\/p>\n

        Kennedy Business Center<\/p>\n

        2nd floor, P O Box 24293<\/p>\n

        1703 Nicosia, Cyprus<\/p>\n

        (Date)<\/p>\n

        Dear Sirs,<\/p>\n

        We hereby confirm that Mr\/Mrs \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026 is well known to us for \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. years and in our opinion is of good financial standing and trustworthy person in his\/her business obligations.<\/p>\n

        This is given without any risk, responsibility or any engagement on our part.<\/p>\n

        (Signed)<\/p>\n

        Name of bank\u201d<\/p>\n

        Ad. 4. Introduction letter from your local accountant\/lawyer\/service provider to the lawyer\/accountant on Cyprus<\/strong><\/p>\n

        The letter can for example say:<\/p>\n

        \u201dT.T.H. Law firm<\/p>\n

        12 Kennedy Avenue<\/p>\n

        Kennedy Business Center<\/p>\n

        2nd floor, P O Box 24293<\/p>\n

        1703 Nicosia, Cyprus<\/p>\n

        (Date)<\/p>\n

        Dear Sirs,<\/p>\n

        Reference for (name and address)<\/p>\n

        I confirm that I have known Mr\/Mrs \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026. for the last \u2026\u2026.. years, acting for him\/her (state capacity in which you have acted) and have also acted for him\/her in relation to (give name of company) and that the address is the address shown in our records for him\/her.<\/p>\n

        I confirm that I know him\/her to be a person of integrity, honesty and good character and that there is no reason why you should not act on his\/her behalf and provide business services to him\/her or (give name of company). I further confirm that:<\/p>\n

        (a) I am not aware that he\/she has been declared bankrupt in any part of the world or that he \/she has a criminal record in any part of the world, and<\/p>\n

        (b) I am not aware that (give name of company) has been declared insolvent or unable to meet its obligations in any part of the world.<\/p>\n

        In my opinion Mr\/Mrs \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026 would not enter into any transaction which he\/she was unable to complete. I also believe that he\/she has legitimate personal funds and that all funds received from him\/her or (give name of company) should be bona fide.<\/p>\n

        Yours truly,<\/p>\n

        Name and<\/p>\n

        (Professional capacity)\u201d<\/p>\n

        Documents for establishing a trust on Cyprus<\/em><\/strong><\/p>\n

        These are almost identical to the documents that are required when establishing a company. The activities of the trust must be described and every person who is involved \u2013 whether founder, protector or beneficiaries \u2013 must be identified in the same way as when establishing a company on Cyprus. If the founder, protector or beneficiary is a physical person, the person must send in:<\/p>\n

          \n
        1. Bank certified copy of passport<\/li>\n
        2. Bank certified declaration of the person\u2019s private address<\/li>\n
        3. Introduction letter from the person\u2019s bank<\/li>\n
        4. Introduction letter from the accountant\/lawyer\/service provider<\/li>\n
        5. CV in English<\/li>\n<\/ol>\n

          If the founder, protector or beneficiary is a company, authorized translations of the following documents must be sent in:<\/p>\n

            \n
          1. Deed of foundation<\/li>\n
          2. Certificate of registration<\/li>\n
          3. Official list over managers and those authorized to sign<\/li>\n
          4. List of present shareholders<\/li>\n
          5. Certified copy of passports for all managers in the company<\/li>\n
          6. Certified copy of passports for all persons who are shareholders in the company<\/li>\n
          7. For company shareholders, authorized translated company documents must be sent in<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

            After 9\/11 2001, there has been a dramatic change in the way banks, tax advisors, and other professionals work. Among other things, it has been decided that banks and relevant advisors must make sure that the money their clients are in possession of does not come from hard criminality and is not going to be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"class_list":{"0":"post-31","1":"page","2":"type-page","3":"status-publish","5":"entry"},"_links":{"self":[{"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/pages\/31"}],"collection":[{"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/comments?post=31"}],"version-history":[{"count":1,"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/pages\/31\/revisions"}],"predecessor-version":[{"id":38,"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/pages\/31\/revisions\/38"}],"wp:attachment":[{"href":"https:\/\/cph-tax.com\/en\/wp-json\/wp\/v2\/media?parent=31"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}