In 2013, the Republic of Cyprus introduced the Law on the Establishment of a National Solidarity Fund (the ‘Fund’) (Law 11(I)/2013) (the ‘Law’) as a significant move towards financial governance. This legislation serves as the legal framework for creating and managing the National Solidarity Fund. The primary purpose of the Fund is to assist in the partial replenishment of losses incurred by natural and legal persons characterized as “retail clients”, due to resolution measures implemented prior to the enactment of the 2016 Law on the Consolidation of Credit Institutions and Investment Companies (Law 22(I)/2016), particularly those affecting the two systemic Banks of Cyprus (Bank of Cyprus and Popular Bank).
As defined by the Law on Investment Services and Activities and Regulated Markets of 2007 (144(I)/2007), a “retail client” is defined as a client who does not fall under the category of a “professional client.” A “professional client” is characterized by possessing the experience, knowledge, and expertise necessary to autonomously make investment decisions and accurately evaluate the associated risks. This classification encompasses entities such as Credit Institutions, Investment Firms (IFs), Insurance Companies, Pension Funds, Provident Funds, Large Undertakings, Public Bodies, among others.
After 11 years since its inception, the Ministry of Finance announced, on 20/12/2023, the launch of the electronic service “Participation in the Replenishment Scheme of National Solidarity Fund” developed in collaboration with the Deputy Ministry of Research, Innovation, and Digital Policy.
This electronic service enables affected individuals to submit applications, facilitating evaluation, beneficiary identification, and the development of a Partial Replenishment Scheme by the Government of Cyprus for potential beneficiaries of the Fund. The Ministry of Finance of the Republic of Cyprus informs that, as part of the continuation of the National Solidarity Fund’s (NSF) procedures, the electronic service “Review Impairment Results of Replenishment Scheme” for Natural Persons is resuming its operation for the period from 6/10/2026 until 6/11/2026. The electronic service is available on gov.cy or via the direct service link.
Further to the Ministry of Finance’s Announcements dated 22/10/2025, 24/9/2025 and 19/6/2025, the service applies exclusively to Natural Persons who had submitted an application to the electronic service “Participation in the Replenishment Scheme of the National Solidarity Fund” during the period from 20/12/2023 to 25/5/2024 and received an NSF-**** reference number, but had not confirmed impairment amounts/ uploaded an IBAN/ submission of objection during the period from 19/6/2025 to 31/10/2025 via the electronic service “Review Impairment Results of Replenishment Scheme”. Access to the service will be provided using the CY Login Profile used during the submission of the online application in the period 20/12/2023–25/5/2024.
Eligibility criteria include natural persons aged 18 and above, representatives of deceased persons, and legal persons, such as companies, associations, foundations, religious institutions, and partnerships. In the case of joint accounts or joint investor share codes, each individual must submit a separate application.
It is clarified that this specific reopening does not apply to Natural Persons who had not submitted an online application during the period from 20/12/2023 to 25/5/2024. For these Natural Persons, the electronic service “Participation in the Replenishment Scheme of the National Solidarity Fund” will reopen within Autumn 2026 on a specific date that will be designated accordingly. Relevant announcements will be posted on the website of the Ministry of Finance.
To participate in the Replenishment Scheme via online application, natural persons with a Cyprus identity card or residence permit (ARC) and legal entities with a Cyprus registration number must register and authenticate on the Government Portal CY Login. Natural persons without a Cyprus identity card and non-residents, along with entities without a Cyprus registration number, need to provide additional details during application submission.
It is crucial for affected foreign individuals to take responsibility for submitting a comprehensive KYC and AML document, indicating and substantiating income sources and impaired deposits/securities before 2013. Seeking support from a qualified professional is imperative to ensure precise adherence to application criteria.
If you require assistance in preparing the KYC and AML document, you can contact us at info@compliancemk.com.
The details presented by MK Compliance Limited are intended for general informational purposes and should not be interpreted as formal or professional legal advice. It is recommended not to take any actions or abstain from them solely based on the information provided above. For specific guidance, it is advised to seek legal or other professional advice.