Title: Cyprus Cracks Down on Financial Crimes: AML-CFT Regulators Take Charge
Cyprus Strengthens AML-CFT Regulations
In its quest to combat financial crimes and abide by international standards, the European Union (EU) member, Cyprus, is fortifying its Anti-Money Laundering (AML) and Countering the Funding of Terrorism (CFT) regulations. Following EU audits and evaluations by bodies like Moneyval and the OECD, Cyprus is updating its legislation.
AML-CFT Regulators: Mission to Protect the Financial System
Cyprus’ ongoing commitment to combat financial crimes is being led by a team of dedicated regulatory agencies, known as the Anti-Money Laundering and Countering the Funding of Terrorism (AML-CFT) regulators. Their primary objective is to enforce stringent laws against illegal financial activities and safeguard the financial system.
Key AML-CFT Regulators in Cyprus
- The Central Bank of Cyprus
- Unit for Combating Money Laundering (MOKAS)
- Authority for the Supervision and Development of Cooperative Societies
- Securities and Exchange Commission
- Cyprus Bar Association
- Institute of Certified Public Accountants
Regulatory Purview and Compliance
Entities subject to this regulatory framework include banks, investment firms, money transfer companies, stock exchanges, accountants, and casinos. These entities are required to execute specific AML and know-your-customer (KYC) controls during onboarding, monitoring, and transactions. customer due diligence (CDD) controls must be implemented to assess customer risk levels. Non-compliance with AML regulations can lead to significant penalties from both the government and EU.
Addressing Challenges in Northern Cyprus
Northern Cyprus, governed by the Turkish Republic, has faced similar AML challenges. External audits revealed vulnerabilities in its AML framework, with financial institutions and casinos being primary suspects for money laundering activities. This is primarily due to insufficient legislation and a lack of expertise within these institutions.
Improving Compliance in Northern Cyprus
To tackle these concerns, regulators, such as the Financial Crimes Investigation Board from Turkey and the European Union, are providing training to enhance AML knowledge and compliance in these sectors. Increasing inspections and scrutiny are targeting entities failing to meet their AML obligations. The expected implementation of the new EU-aligned AML law, combined with FATF regulations, aims to be more effective in eradicating financial crimes in Turkish Republic of Northern Cyprus.
Heightened Scrutiny and Consequences in Cyprus
With increasing focus on AML and CFT regulations, financial institutions and casinos in Cyprus face heightened scrutiny. Penalties for non-compliance include hefty fines and reputational damage. Sanction Scanner, a leading AML compliance solution, assists Cypriot businesses in satisfying global and local AML requirements.
Maintaining Financial Integrity with Sanction Scanner
Compliance with AML and CFT regulations is crucial for preserving the integrity and stability of Cyprus’ financial sector. Sanction Scanner offers advanced technologies to help businesses navigate these complexities. For more information or to schedule a demo, please don’t hesitate to contact us.