Money Laundering Law of Cyprus: Key Provisions and Definitions

Overview

The Money Laundering Law of Cyprus is designed to prevent and combat money laundering and terrorist financing. This article summarizes the key provisions and definitions outlined in the law, including money laundering offenses, predicate offenses, confiscation orders, and punishments.

Money Laundering Offenses

• Definition: Section 4 defines several activities that constitute money laundering offenses, including:
  • Converting or transferring property
  • Concealing the true nature of property
  • Acquiring or possessing property
  • Participating in predicate offenses
  • Providing information to evade investigations
  • Aiding or abetting

Predicate Offenses

• Definition: Predicate offenses are criminal offenses punishable with imprisonment exceeding one year, financing of terrorism offenses, and drug trafficking offenses.

Confiscation Orders

• Procedure: A court that convicts a person for a prescribed offense must conduct an inquiry to determine if the accused acquired any proceeds from the commission of a predicate offense.
• Application of Procedures: This involves applying procedures set out in Part VI of the Law or under this Part.

Proceeds Determination

• Definition: For the purposes of determining proceeds, all payments made to the accused or others in connection with a predicate offense are deemed to be proceeds, regardless of whether they were committed by the accused or another person.

Punishments

• Imprisonment and Pecuniary Penalties: Money laundering offenses can result in imprisonment and pecuniary penalties. The specific punishments vary depending on whether the offender knew or should have known that the property was from a predicate offense.

Jurisdiction

• Subject to Cyprus Courts: Predicate offenses can be subject to the jurisdiction of Cyprus Courts, even if committed outside Cyprus.

Knowledge and Intention

• Inference: Knowledge, intention, or purpose required for money laundering offenses can be inferred from objective and factual circumstances.

The Money Laundering Law of Cyprus aims to prevent and combat money laundering and terrorist financing by defining various offenses and procedures for confiscating proceeds from predicate offenses.