Sovereign Cyprus - Business Bank Account Opening

All companies require a bank account but opening accounts is becoming increasingly difficult due to international transparency and anti-money laundering initiatives. Many banks will no longer open accounts for non-resident companies. Others will only open bank accounts for companies that have been introduced by a recognised and licensed service provider that is on their ‘approved list’.

All banks now undertake increased due diligence – not just when opening accounts but also on a transactional basis. Bank account opening procedures differ widely between banks, sometimes even between different branches of the same bank. Applications can be complicated, and documents are often required to be certified or notarised and translated.

Business bank account opening due diligence requires a detailed assessment of expected transaction volumes and values to build a risk profile, comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

Individual bank requirements may vary, but to open a full Cyprus business account you will generally be required to provide the following documents:

• Proof of a Cyprus company registration – the original or certified copy of the Certificate of Incorporation and Memorandum and Articles of Association.
• Proof of a Cyprus registered office address.
• Cyprus tax identification number.
• Personal details and proof of identity for all partners, directors, trustees or owners.
• Identification of all shareholders with over 10% of the business – ultimate beneficial owners (UBOs).
• A resolution of the Board of Directors to open an account and identification of those who have authority to operate the account.
• Nature and purpose of business and its legitimacy.
• A business model explaining why a Cyprus business bank account is needed.

You may also be required to provide:

• Bank statements.
• Audited accounts.
• References.

The bank should verify this information by at least one of the following methods:

• For established corporate entities, reviewing a copy of the latest report and accounts (audited, if available).
• Conducting an enquiry by a business information service, or an undertaking from a reputable and known firm of lawyers or accountants confirming the documents submitted.
• Undertaking a company search and/or other commercial enquiries to see that the entity has not been, or is not in the process of being, dissolved, struck off, wound up or terminated.
• Utilising an independent information verification process, such as by accessing public and private databases.
• Obtaining prior bank references, if available.
• Visiting the corporate entity, where practical, or contacting the corporate entity by telephone, mail or e-mail.

Enhanced Due Diligence (EDD) is a mandatory, in-depth screening process required by financial regulators for high-risk business customers when opening a Cyprus business bank account. It goes beyond standard KYC procedures to verify the legitimacy of funds and owners, typically triggered by high-risk factors like PEPs, complex ownership structures, or operations in high-risk jurisdictions.