To make a long story short Cyprus banks are in trouble and they need bailing out by the EU. The agreement being that Cyprus will levy a 6% charge on all accounts with under 100,000 euros and a 10% charge on all accounts over 100,000 euros. The percentage taken will be converted to bank stock, which is virtually worthless.
Savings accounts in Cyprus have been frozen and ATMs are all empty. The countries legislators will vote on this tomorrow and it is expected to pass. Cypriot banks have long been tax shelters and places to hide ill gotten gains for eastern European crime syndicates.
Interestingly both Manwin and AVN are headquartered (officially) in Cyprus. AVN’s Theo Sapoutzis is a Cypriot.
Manwin has been in the process of relocating it’s headquarters to Dublin, Ireland but they apparently still have cash assets in Cyprus.
Looks like people are going to have to look elsewhere to launder money now…..