Financial Crime World

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Cyprus Takes Tough Stance Against Money Laundering and Terrorist Financing

The Central Bank of Cyprus (CBC) has been empowered by law to take strong measures against money laundering and terrorist financing. Under the Anti-Money Laundering and Combating the Financing of Terrorism Law, the CBC can impose financial fines, amend or revoke licenses, suspend or remove officials, including Money Laundering Compliance Officers and Heads of Internal Audit and Regulatory Compliance Units.

Targeted Financial Sanctions

In 2016, Cyprus implemented United Nations Security Council Resolutions and European Union Council Decisions and Regulations to comply with targeted financial sanctions. The CBC issues directives to supervised entities to ensure compliance and works closely with the Ministry of Foreign Affairs and the Ministry of Finance to exchange information and transmit lists of sanctioned countries and individuals.

National Risk Assessment

In 2018, Cyprus conducted a national risk assessment to identify deficiencies in its regulatory framework and effectiveness of procedures. The report highlighted areas for improvement and was endorsed by all stakeholders. The CBC will actively participate in the next round of the National Risk Assessment.

Follow-up on MONEYVAL Recommendations

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) applied its enhanced follow-up procedure after evaluating Cyprus’ anti-money laundering and counter-terrorist financing measures. Cyprus reported back to MONEYVAL in 2021, acknowledging that some improvements were made late and others still need to be addressed.

CBC Directives and Regulations

The CBC has issued directives on the prevention of money laundering and terrorist financing, as well as sanctions against individuals and entities subject to international sanctions. The bank also regulates supervised entities and provides guidance on compliance with anti-money laundering and counter-terrorist financing regulations.

The Central Bank of Cyprus is committed to preventing the misuse of its financial system for money laundering and terrorist financing. Through its directives, regulations, and close collaboration with international organizations, the bank ensures that Cyprus complies with global standards and best practices in this area.