The Cyprus bar association said on Monday it is concerned about employees and companies affected by US and UK sanctions on entities that had dealings with Russia.
A report last week suggested that employees of several companies that were sanctioned are having difficulties banking and being paid.
As of April 12, 2023, banks have voluntarily decided to comply with and implement the restrictive measures and sanctions imposed by the US and the UK on April 12, 2023.
“Although we respect their decision, as we fully understand its purpose and necessity, we disagree with the banks’ decision, without any real and/or legal basis, to further freeze and/or block the bank accounts of companies of legitimate clients, which have not been included in the sanctions of any organisation or state, and are not owned by, nor controlled by, persons included in them,” the bar association stated.
They added: “Especially in cases where these companies have provided all the documents that legally prove the termination of their legal client relationship with the offices in question.”
They added that if the companies have proceeded with all the necessary changes there is no reason to cause problems to these individuals.
“This treatment brings about chain effects as it causes an inability for legitimate client companies to carry out their work and activities and an inability to pay salaries to their staff,” the bar association said.
According to the bar, there is a visible and immediate risk, which will to lead a deadlock in an important sector of our economy.
“This injustice should be removed immediately, since legal investors with clearly legal activities are unjustifiably punished and victimised simply because they received legal administrative services, from specific administrative service providers,” they said.
The bar said that essentially it causes an unfounded and unfair emulation with sanctions, since in practice the same result occurs as if the companies of legitimate customers had been included in them.
They added that the country is in front of a crisis and corrective decisions need to be made to rectify the situation.