In February, the Central Bank of Cyprus reported 16 bounced cheques worth €19,388, involving 7 legal entities and 2 natural persons. This marked a decrease from the previous year, emphasizing the importance of regulatory measures to prevent financial malpractices.
What does the Central Bank of Cyprus report say about bounced cheques in February?
The Central Bank of Cyprus reported 16 bounced cheques in February, valued at €19,388, involving 7 legal entities and 2 natural persons. Comparatively, the Jan-Feb period of 2024 saw a decrease with 61 bounced cheques worth €89,035, a reduction from the previous year’s €160,882.
Increased Vigilance on Bounced Cheques
The Central Bank of Cyprus (CBC) has shone a spotlight on financial malpractices involving bounced cheques for the month of February. An alarming total of 16 bounced cheques were reported, amounting to €19,388. This activity has not only triggered financial concerns but also brought to light the individuals responsible. Consisting of 7 legal entities and 2 natural persons, these 9 individuals have found their way into the preliminary directory of the Central Information Repository (CIR), a system the CBC meticulously maintains.
Comparing Yearly Trends
Taking a broader look at the financial canvas, the January-February period of 2024 saw 61 bounced cheques make their way into the CIR, with a total value of €89,035. This marks a significant reduction from the previous year’s €160,882 for the same timeframe. The individuals involved in these incidents numbered 25, with 17 being legal entities and 8 being natural persons, an indicator that businesses, as well as individuals, are part of this concerning trend.
Monitoring and Preventive Measures
Moreover, the CBC data reveal that the number of individuals registered in the CIR was 13 in February 2024 itself. This figure comprised 6 legal entities, one natural person, and an additional 6 natural persons who had control over legal entities. The first two months of 2024 reflect a slight decrease in the total number of individuals registered in the CIR, with 47 individuals compared to the previous year’s 55 in the same bimonthly period.
A Regulatory Perspective
The CBC’s report underscores the importance of a strict regulatory environment to safeguard against financial misconduct. The numbers not only represent a monetary value but also highlight the effectiveness of regulatory measures. By maintaining a vigilant repository and highlighting the trends, the CBC aims to deter the practice of issuing cheques without sufficient funds and to instill a culture of reliability and trust in financial transactions.
How many bounced cheques were reported in February according to the Central Bank of Cyprus?
The Central Bank of Cyprus reported a total of 16 bounced cheques in February, amounting to €19,388. These bounced cheques involved 7 legal entities and 2 natural persons.
What is the significance of the decrease in bounced cheques compared to the previous year?
The decrease in bounced cheques reported in February compared to the previous year is a positive sign, indicating that regulatory measures put in place may be effective in preventing financial malpractices. In the Jan-Feb period of 2024, there were 61 bounced cheques worth €89,035, lower than the previous year’s total of €160,882 for the same timeframe.
How does the Central Bank of Cyprus monitor bounced cheques and individuals involved in such activities?
The Central Bank of Cyprus maintains a Central Information Repository (CIR) to track individuals and entities involved in bounced cheques. In February 2024, a total of 13 individuals were registered in the CIR, including 6 legal entities, one natural person, and 6 natural persons who had control over legal entities.
What is the regulatory perspective on the issue of bounced cheques as highlighted by the CBC report?
The CBC report emphasizes the importance of a strict regulatory environment to prevent financial misconduct related to bounced cheques. By maintaining a vigilant repository and highlighting trends in bounced cheque activity, the CBC aims to deter the practice of issuing cheques without sufficient funds and promote reliability and trust in financial transactions.
