Financial Crime World

Fighting Financial Crimes: Cyprus’s AML-CFT Regulators on the Frontline

Amidst growing global concerns over money laundering and terrorist financing, Cyprus, a European Union (EU) member state, is bolstering its anti-money laundering (AML) and countering the financing of terrorism (CFT) legislation to meet EU directives and regulatory standards. In their mission to combat financial crimes, AML-CFT regulators play a pivotal role in safeguarding Cyprus’s financial system and upholding its status as a responsible international economic player.

Leading the Charge: Cyprus’s AML-CFT Regulators

A dedicated network of government agencies in Cyprus, known as Anti-Money Laundering and Countering the Funding of Terrorism (AML-CFT) regulators, work tirelessly to ensure all financial institutions comply with local and international AML-CFT regulations. Some key regulatory bodies in Cyprus include:

  • The Central Bank of Cyprus
  • The Unit for Combatting Money Laundering (MOKAS)
  • The Authority for the Supervision and Development of Cooperative Societies
  • The Securities and Exchange Commission
  • The Council of the Cyprus Bar Association
  • The Council of the Institute of Certified Public Accountants

These agencies enforce AML-CFT measures to identify and prevent illicit financial activities.

Entities Subject to AML-CFT Regulations

The following entities are subject to AML-CFT regulations in Cyprus:

  • Banks
  • Investment firms
  • Money transfer companies
  • Stock exchange companies
  • Accountants
  • Casinos
  • And other financial service providers

With increasing awareness and emphasis on AML-CFT compliance, these entities are responsible for implementing specific customer due diligence (CDD) checks, transaction monitoring, and suspicious transaction reporting. Failure to comply with AML regulations can result in hefty fines from both the Cyprus government and the EU.

Money Laundering in Northern Cyprus: A Concern

In previous external evaluations, weaknesses in AML measures were observed in financial institutions and casinos in the Turkish Republic of Northern Cyprus (TRNC), making them susceptible to financial crimes. The lack of comprehensive and up-to-date AML legislation in TRNC, as well as insufficient knowledge and expertise, created an enabling environment for criminal activities, including money laundering and terrorism financing.

Fighting Back in Northern Cyprus

To address these concerns, TRNC has been strengthening its AML legislation to align with EU directives and Financial Action Task Force (FATF) regulations. Some recent initiatives include:

  • Renewed focus on combating money laundering
  • Increased inspections and regulatory scrutiny
  • Training for financial institutions and casinos
  • Stricter AML-CFT audits
  • Increased penalties for non-compliant organizations

Staying Compliant with Sanction Scanner

Financial institutions and casinos in Cyprus need robust AML-CFT solutions to stay compliant with local and international requirements. Sanction Scanner provides tailored AML solutions for Cypriot businesses, ensuring they meet both global and local AML-CFT requirements. By implementing advanced regulatory compliance tools, businesses can rest assured that their risk profile is managed, and their reputation is protected.

Contact Sanction Scanner today to learn more about our services and how they can help your business maintain the highest standard of AML-CFT compliance.