Central bank denies internet banking claims

THE Central Bank of Cyprus (CBC) on Saturday categorically denied accusations made by former Laiki Bank chairman Andreas Philippou that there was a delay in shutting down internet banking on March 16.
Philippou told the committee of inquiry investigating the country’s banks and economy that the CBC delayed shutting down internet banking on the day following the Eurogroup’s decision to cut bank depositors money, giving them the chance to move millions out of their accounts.
In a statement released yesterday, the CBC denied Philippou’s claims that internet banking continued to operate on March 16.
The bank had sent out a circular on the same day to all financial institutions on the island explaining the situation clearly, the statement said.
“The CBC is temporarily suspending, until further notice, the settlement orders that have already been inputted into any system including payments or clearing or settlement systems operating within or outside Cyprus, including commands within the same institution (intra-bank transactions),” the circular said.
The CBC emphasised that outgoing transfers from financial institutions are not in operation during non-working days.
“Therefore, any transactions which were entered for execution at the close of business on Friday, March 15 would not have been completed,” the CBC said.
Philippou had claimed that up until Saturday afternoon on March 16 capital could have left the country via online transfers.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.