Financial Crime World

Cyprus’ Unyielding Stance Against Financial Crime: MOKAS, the Powerhouse Unit Against Money Laundering and Terrorist Financing

The Mediterranean island nation of Cyprus has made a significant name for itself in the global fight against financial crime. With its Unit for Combating Money Laundering (MOKAS) leading the charge, Cyprus has proven to be a formidable force against money laundering and terrorist financing.

MOKAS: The Renowned Financial Intelligence Unit

Established in 1996, MOKAS is the Financial Intelligence Unit (FIU) of Cyprus. Its mission is to prevent and suppress money laundering and terrorist financing activities through rigorous prevention and suppression measures.

MOKAS, which is composed of legal experts, police officers, customs officers, and financial analysts, plays a pivotal role in:

  • Receiving, analyzing, and disseminating disclosures of suspicious transactions and other relevant information.
  • Building cooperative relationships with various domestic and international partners for effective information exchange and investigative prowess.

MOKAS operates under the framework defined by the Law on the Prevention and Suppression of Money Laundering Activities of 2007. The head of this unit is represented by an individual from the Attorney General’s Office, ensuring a strong legal foundation.

Role of Cyprus’ Financial Sector

Cyprus’ financial sector plays a crucial role in the country’s efforts to combat money laundering. Various supervisory authorities regulate the sector, including:

  • Central Bank of Cyprus
  • Securities and Exchange Commission
  • Superintendent of Co-operative Societies and Co-operative Development
  • Superintendent of Insurance

MOKAS’ cooperative relationship with these financial institutions enables closer collaboration and effective risk management.

Stricter Benificial Owner Identification

One significant aspect of Cyprus’ anti-money laundering legislation is the identification of beneficial owners. Unlike the EU 3rd AML Directive’s 25% threshold, Cypriot law mandates the identification of natural persons who control at least 10% of a legal entity. This stricter threshold sets Cyprus apart from other countries and strengthens its position against financial crime.

International Cooperation

International cooperation is a priority for MOKAS and other Cyprus enforcement agencies. They prioritize requests for legal assistance from foreign authorities and actively participate in various international organizations, such as:

  • Council of Europe
  • EU Committee
  • Egmont Group

MOKAS also cooperates with foreign FIUs without the need for a Memorandum of Understanding and complies with numerous international conventions, ensuring a global response to financial crimes.

Cyprus: A Vigilant Regional Financial Center

Cyprus, with its attractive regional financial center status, remains cautious against the threats of money laundering and terrorist financing. Through robust legislative and practical measures, Cyprus continues to uphold international standards and stay ahead in the fight against financial crime.