Supreme Constitutional Court rules small business banking law unconstitutional

On October 20, 2026, the Plenary of the Supreme Constitutional Court of Cyprus ruled that a law passed by the House of Representatives in March 2026 is unconstitutional. The legislation, titled 'The Law on the Comparability of Fees, Payment Account Switching and Access to Payment Accounts for Very Small Enterprises of 2026', was referred to the court by the President of the Republic under Article 51.1 of the Constitution.

The court determined that the law violated Article 26 of the Constitution, which protects the right to freedom of contract. The disputed legislation aimed to extend the consumer protection framework established by Directive 2014/92/EU—previously transposed into national law via Law 64(I)/2017 exclusively for individuals—to cover very small enterprises. The court concluded that mandating banks to provide such accounts to these entities constituted an impermissible interference with the banks' contractual freedom.

The decision follows an appeal by the President after the parliament sought to expand regulatory banking safeguards beyond the scope of existing consumer protections. The ruling marks a significant legal victory for financial institutions, affirming their constitutional right to freedom of contract in business dealings.