Insider Business HSBC becomes correspondent bank for Bank of Cyprus

HSBC becomes correspondent bank for Bank of Cyprus

HSBC has become correspondent bank for Bank of Cyprus for transaction services in dollars and this is a vote of confidence for the Cypriot lender, Phileleftheros reports.

In addition to HSBC, Bank of Cyprus also has Bank of New York Mellon and Citibank NA, New York as correspondent banks for such transactions.

Correspondent banks are financial institutions that act as an agent on behalf of other financial institutions, usually foreign banks.

Insiders said the recent strengthening of the list of correspondent banks proves that Cyprus’ image in regard to money laundering allegations within the international banking environment has been restored. And that tighter rules and measures applied over the recent years have begun to bear fruit.

Large banks discontinued their activities in Cyprus in recent years as a preventive money laundering move since compliance costs are much higher compared to revenue generated by correspondent banking services. Especially in high-risk and low-profit-making countries.

At some stage, the Cypriot banking system was excluded from international banking since very few international banks continued providing dollar-trading services.

Commercial banks, along with the Association of Cyprus Banks and incumbent Central Bank of Cyprus Governor Constantinos Herodotou have gone to great lengths in their bid to improve the island’s image.

Foreign communication consultants who were called in to assist have organised numerous presentations and overseas meetings to transfer the message that corrective changes have taken place.

When it comes to transaction checks, banks not only have to comply with rules and regulations of the island’s Central Bank, but also with those of correspondent banks they associate with.

The latest report by the Council of Europe’s Moneyval committee was particularly favourable for the banking sector, and this has certainly helped strengthening the image of Cyprus.

The report acknowledges the measures adopted by the country to combat money laundering and terrorist financing, and identifies areas where further improvement is needed.

Correspondent banks may perform Treasury services, manage foreign exchange, manage international investments and facilitate international trade and finance on behalf of the foreign bank. The correspondent bank charges the foreign bank for these services.

Read more:



Top Stories

Cyprus records Covid death, raising number to 33, five critical-149 new cases

  A ninety one year old woman with underlying illnesses, succumbed to Covid-19 today at the Famagusta General raising the number of positive cases who...

Orthodox priest shot in Lyon, France; assailant flees

  An Orthodox priest was shot and injured at a church in the French city of Lyon by an assailant who then fled. The priest was...

Tala fire under control

  A massive blaze between the Tala, Koili and Kissonerga communities was placed under control late this afternoon, after more than two hours. It destroyed trees,...

The first 007 dies at 90-So long Sean Connery

  Scottish movie legend Sean Connery, who shot to international stardom as the suave, sexy and sophisticated British agent James Bond and went on to...

Greece extended lockdown from Tuesday as numbers surge

  Greece will expand a night-time curfew on movement and shut restaurants and bars in the most populous areas of the country for one month...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...