Cyprus Steps Up Efforts to Combat Financial Crime with National Risk Assessment Report
Strengthening Defenses Against Money Laundering and Terrorist Financing
Nicosia, December 3 - The Republic of Cyprus has taken a significant step in strengthening its defenses against money laundering and terrorist financing by publishing its first national risk assessment report. The report reveals vulnerabilities in the country’s financial system and outlines measures to mitigate these risks.
Key Findings
The report was conducted using the World Bank methodology and identified key areas where Cyprus is exposed to threats from money laundering and terrorist financing, including:
- Administrative services sector
- Reliance on third parties
Despite several risk-reducing factors already in place, such as enhanced AML/ CFT legislation and close cooperation between authorities, the report highlighted several areas that require improvement, including:
- Upgrading internal controls of obliged entities
- Increasing resources for investigators and prosecutors
- Enhancing data collection procedures
Implemented Risk Mitigation Measures
The report also identified several risk mitigation measures implemented since 2012, including:
- Implementation of a risk-based approach to supervision
- Investment in IT tools and human resources
Action Plans to Address Vulnerabilities
To address these vulnerabilities, Cyprus authorities have drawn up specific action plans aimed at strengthening the country’s defenses against financial crime. These include:
- Issuing directives to banks on topics such as reliance on third parties and foreign risks
- Enhancing preventive measures in the administrative services sector
- Providing specialized training to reporting entities
Commitment to Combating Financial Crime
The government, competent supervisory authorities, and FIU remain committed to taking all necessary measures to minimize money laundering threats and risks to Cyprus’ financial system. The national risk assessment report provides a comprehensive tool for identifying vulnerabilities and enhancing the effectiveness of measures taken.
International Cooperation
Cyprus’ efforts to combat financial crime come at a time when the country is seeking to maintain its reputation as a reliable and secure financial hub in the region. The country has been working closely with international organizations, including the Financial Action Task Force (FATF), to implement anti-money laundering and counter-terrorism financing measures.
Accessing the Report
The full text of the national risk assessment report can be accessed online.