Jordan Kuwait Bank Gets Licence To Operate International Banking Unit In Cyprus

by Lorys Charalambous, Tax-news.com, Cyprus

31 May 2001

Jordan Kuwait Bank (JKB), a major banking and financial services group which was established in 1976 as a joint investment by Jordanians, Kuwaitis and other Arab investors, is reported to have secured a license from the Central Bank of Cyprus to operate an International Banking Unit (IBU) on the island. JKB will be the fourth bank from Jordan to have received a license in Cyprus.

JKB will be offering its services in foreign currency to entities based in Cyprus and abroad and will also be offering loans in foreign currency to local residents.

In addition to the Central Bank, the Cypriot banking system consists of 9 local commercial banks, 30 IBUs , 2 administered banking units, 3 specialised financial institutions and a number of leasing companies. Commercial banking arrangements and practices follow the British model.

Cyprus' financial services sector has been further enhanced recently with the news that Western Union, the money transfer giant, has expanded its operations in Cyprus by signing cooperation agreements with Laiki Bank and Alpha Bank. The company already cooperates with Bank of Cyprus, Hellenic Bank, National Bank and Universal. Western Union, which is represented in Cyprus by Nicosia-based G.A.P., handles cash transfers to the families of workers who are employed in Cyprus, importers and exporters, offshore companies, accountancy firms and lawyers, among others.

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