Asked for reactions to the finance ministry’s for banks to absorb some losses to avoid raising interest rates on performing loans, Herodotou said that “whatever banks decide to do must be consistent with European regulations”.

Source: https://cyprus-mail.com/2023/04/21/flurry-of-activity-over-russian-accounts/

Herodotou told deputies that despite the fact Cyprus is only legally obliged to comply with EU and UN sanctions, any bank which chooses not to freeze accounts of sanctioned individuals or companies can be considered to be violating the sanctions.

Source: https://cyprus-mail.com/2023/05/10/ignoring-us-and-uk-sanctions-would-be-catastrophic-to-cyprus-economy/