Cyprus Finance Sector Boosts Compliance Efforts to Global Standards
A Comprehensive Reform Program Pays Off
In the aftermath of the 2013 financial crisis that hit Cyprus, the country’s banking industry embarked on a massive overhaul aimed at elevating its compliance regime to match global standards. The ambitious goal was achieved through a comprehensive reform program, impressing rating agencies and international partners alike.
International Recognition
Moneyval, the international anti-money laundering (AML) and combating the financing of terrorism (CFT) monitoring body, has praised Cyprus’ progress in strengthening its financial regulation and supervision. Meanwhile, US correspondent banks have increased their presence in Cyprus, a rare feat considering the current era of de-risking.
Factors Contributing to Success
Experts point to several factors that contributed to this success:
- Innovative Compliance Programs: The development of innovative compliance programs was a key factor in Cyprus’ ability to elevate its compliance regime.
- Dynamic Implementation: The implementation of these programs was done dynamically, allowing for quick adaptation to changing regulatory requirements and market conditions.
- Culture of Compliance: The fostering of a culture of compliance within the front-line jurisdiction was also crucial in driving success.
Sharing Insights on Building a Strong Compliance Culture
To share insights on building a strong compliance culture, Guidehouse, Pillsbury, and the Association of Cyprus Banks collaborated on a panel discussion featuring industry experts from Bank of Cyprus and Hellenic Bank. The event aimed to shed light on strategies for creating long-lasting, sustainable improvements in financial sector compliance.
Key Takeaways
- The importance of developing innovative compliance programs was emphasized.
- Dynamic implementation was highlighted as a critical factor in success.
- Fostering a culture of compliance within the front-line jurisdiction was identified as essential.
By following these strategies, Cyprus has been able to boost its compliance efforts and elevate its financial sector to global standards.