Financial Crime World

Cyprus Bar Association Directive on Money Laundering Prevention Measures for Members

Background

The Cyprus Bar Association (CBA) issued a directive in September 2015 to its members regarding the prevention of money laundering and terrorist financing. As the supervisory authority for lawyers, the CBA clarified the law and professional requirements for avoiding, recognizing, and reporting potential money laundering and terrorist financing activities.

Contact Information for the CBA’s Anti-Money Laundering Department

  • Florinis 11, Offices 101 & 202, 1065 Nicosia, Cyprus
  • Phone: (22) 873300
  • Fax: (22) 873013
  • Email: amldep@cybar.org.cy

Applicability and Importance

This directive applies to all members of the CBA, regardless of their employment status. Understanding the obligations concerning money laundering and terrorist financing prevention measures is crucial for maintaining the integrity of the profession and protecting the Cyprus legal system.

Key Terms and Interpretations:

  • Administrative Services
  • Advisory Authority
  • Beneficial Owner
  • Business relationship
  • Client
  • Compliance Officer
  • Criminal conduct
  • EU Directive
  • European Economic Area
  • Knowledge
  • Lawyer
  • MOKAS (Unit for Combating Money Laundering at the Attorney General’s office)
  • Person
  • Politically Exposed Persons
  • Prescribed activities and services
  • Privileged Information
  • Suspect/Suspicion
  • Terrorist financing
  • The Council
  • The Law
  • Unit trust

Avoiding and Recognizing Money Laundering and Terrorist Financing

  1. Risks and Vulnerabilities: Professions, including lawyers, should be familiar with the risks and vulnerabilities associated with money laundering and terrorist financing activities. They are required to implement various measures to prevent these activities and recognize any suspicious transactions.

  2. Risk-Based Approach: The directive outlines a risk-based approach for identifying and evaluating clients, countries/geographics, and services.

Record-Keeping and Reporting Requirements

  1. Proper Record Keeping: Members are expected to maintain proper records related to client identification and transaction details.

  2. Reporting Requirements: Members must comply with reporting requirements when suspicious transactions are detected, which may involve both internal reporting and external reporting to the authorities.

  3. Penalties: Failure to comply with these regulations may result in fines and disciplinary action.

Education and Training

Members are encouraged to undergo regular training and awareness programs to stay informed of the latest developments in money laundering and terrorist financing prevention measures. Training is required for partners, staff, and compliance officers.

Conclusion

This directive highlights the importance of money laundering and terrorist financing prevention for all members of the Cyprus Bar Association. By understanding their responsibilities and obligations, members can contribute to maintaining the integrity of the profession and the Cyprus legal system as a whole.