Turkish Republic of Northern Cyprus has a flexible policy in the sphere of foreign currency transactions. Foreign currency accounts can be opened at any branch of local or foreign bank, which is accredited in the country. Special permit to open and conduct operations on foreign exchange account or by private entities, including transfers of currency into or out of the country is not required. Such activities are not regulated by current legislation. In order to further develop the country's economy and strengthen the position of a dynamic financial center, the government encourages the establishment and operation of offshore banks, resulting in the simplification of procedures for registration and licensing, as well as low rates of corporate and income taxes.