Russia Removes Cyprus from list of Offshore Zone  
(1) The Central Bank of the Russian Federation has issued instructions, effective 29 March 2010, for the removal of Cyprus from the list of countries described as “offshore zones” with a privileged taxation system.

(2) According to a Central Bank of Cyprus press release, “the removal of Cyprus from the list is a positive development and strengthens the reputation and esteem of Cyprus as an international financial centre.”

(3) According to a Regulation of the Central Bank of the Russian Federation, which was introduced in 2003, the opening of bank transfer accounts from Russian banks to banks operating in “offshore zones” was subject to various terms, conditions and restrictions. Such a condition, amongst others, was that banks operating in Cyprus had to submit details of their proposed transactions to the Russian Central Bank of any foreign exchange with companies or individuals, as well as any connections between domestic and international banking units.