Financial Crime Risk Assessment in Cyprus: A National Risk Assessment Reveals Money Laundering and Terrorist Financing Risks of Virtual Assets Activities and Providers

The Republic of Cyprus has published a National Risk Assessment (NRA) on money laundering and terrorist financing risks associated with virtual assets activities and providers. The assessment aims to provide crucial information to regulated entities in identifying and assessing these risks.

Key Findings from the National Risk Assessment

• The NRA highlights the risks posed by virtual assets activities, including money laundering and terrorist financing.
• Regulated entities are advised to consider the findings of the NRA when conducting their own risk assessments of money laundering and terrorist financing risks related to virtual assets activities.

Guidance for Regulated Entities

• Regulated entities should take into account the National Risk Assessment’s insights into ML/TF risks posed by virtual assets activities.
• They must also consider the Joint Guidelines on simplified and enhanced customer due diligence, as well as factors to be considered when assessing money laundering and terrorist financing risk associated with individual business relationships and occasional transactions.

Additional Sources of Information

• Firms should consider various sources of information, including:
  • European Commission’s supranational risk assessment
  • Government national risk assessments
  • Policy statements
  • Alerts
  • Explanatory memorandums to relevant legislation

Seeking Guidance on Financial Crime Risk Assessment in Cyprus

Experts at A. G. Paphitis & Co. LLC emphasize that this information is general in nature and should not be considered as professional or formal legal advice.

• Those seeking guidance on financial crime risk assessment in Cyprus are advised to consult with a qualified expert or seek legal counsel.
• For more information, interested parties can contact the team of experts at regulatory@agplaw.com.