Bank of Cyprus Hit with €790,000 Fine for Anti-Money Laundering Failures

The Central Bank of Cyprus has imposed a significant fine on the island’s largest lender, Bank of Cyprus, for its failure to comply with anti-money laundering laws and directives.

Background

The fine of €790,000 was announced today and stems from an audit conducted in 2018 and 2019. The audit revealed that Bank of Cyprus failed to adhere to certain provisions of the law and the bank’s own directive on preventing money laundering and terrorist financing.

Regulatory Action

The Central Bank had previously conducted an examination during the aforementioned years and subsequently decided to impose the fine on December 9, 2021.

Fine Reduction Option

In a statement, the Central Bank noted that if the fine is paid within a specified time limit, the amount will be reduced by €118,500 (15%). This provides an incentive for the bank to pay the fine promptly and take steps to address its anti-money laundering shortcomings.

Key Points

• Fine imposed: €790,000
• Failure to comply with anti-money laundering laws and directives
• Audit conducted in 2018 and 2019
• Fine reduction option available if paid within a specified time limit