Implementation Of The EU Regulation No. 655/2014

The EU Regulation No. 655/2014 establishes a European Account Preservation procedure to facilitate cross-border debt recovery in civil and commercial matters which shall be implemented in Cyprus on the 18^th of January 2017. The said Regulation permits acreditor to freeze a debtor's bank accounts anywhere in the EU (except UK and Denmark which have opted out).  Since UK and Denmark have opted out of the said Regulation, their courts cannot issue such an order and neither are their banks obliged to comply with such an order which has been issued by courts of other member states.

Vital aspects to note:

1. This Regulation is intended to be an alternative to protective measures available under national laws and the preservation order can be requested by applicants both pre-judgment and after the applicant has obtained a judgment.