Cyprus Makes Headway in Compliance Regime After Financial Crisis
The Cypriot banking industry has made significant progress in elevating its compliance regime and overall stability to the highest global standards following the devastating 2013 financial crisis.
A Comprehensive Reform Program
In response to the crisis, the sector embarked on a comprehensive reform program aimed at strengthening its compliance framework. This effort has yielded positive results, earning praise from:
- Moneyval
- Rating agencies
- US correspondent banks, which have increased their presence in Cyprus amidst an era of de-risking
Key Factors Behind Success
The success story can be attributed to three key factors:
- Innovative Compliance Programs: The development and implementation of innovative compliance programs has been instrumental in driving lasting improvements within the industry.
- Dynamic Implementation: The dynamic implementation of these programs in a front-line jurisdiction has allowed Cyprus to stay ahead of the curve and maintain its competitive edge.
- Culture of Compliance: The cultivation of a culture of compliance has enabled banks to prioritize compliance as an integral part of their operations, rather than just a necessary evil.
Fostering a Culture of Compliance
A recent panel discussion organized by Guidehouse, in partnership with Pillsbury and the Association of Cyprus Banks, brought together industry experts from Bank of Cyprus and Hellenic Bank to share their insights on fostering a culture of compliance. The event provided a platform for stakeholders to engage in meaningful discussions and share best practices in this critical area.
Takeaways
- Building a culture of compliance requires commitment and dedication from all levels within an organization.
- Innovative compliance programs can drive lasting improvements, but their implementation must be dynamic and ongoing.
- Staying ahead of the curve is crucial in a rapidly changing regulatory landscape.