Cyprus’s Crusade Against International Financial Crimes: The Role of AML-CFT Regulators
Amidst the increasing global focus on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), Cyprus—an EU member—is strengthening its regulatory framework to combat financial crimes. In this article, we explore the actions taken by Cyprus’s AML-CFT regulators to protect the financial system and preserve the nation’s reputation.
Combating Financial Crimes in Cyprus: The Frontline Agencies
At the forefront of the fight against financial crimes in Cyprus are the Anti-Money Laundering and Countering the Funding of Terrorism (AML-CFT) regulators. This network of dedicated officials is responsible for enforcing stringent laws and regulations, aiming to prevent and identify illegal financial activities. Their role is critical in maintaining the credibility of Cyprus as a responsible and reliable economic player on the international stage.
below are some key AML-CFT regulatory bodies in Cyprus:
- Central Bank of Cyprus, Unit for Combating Money Laundering (MOKAS)
- Authority for the Supervision and Development of Cooperative Societies
- Securities and Exchange Commission
- Cyprus Bar Association
- Institute of Certified Public Accountants
Together, these agencies ensure that banks, investment firms, money transfer companies, stock exchange companies, accountants, casinos, and other financial service providers adhere to AML and CFT regulations.
Meeting Regulatory Expectations: CDD Checks and Monitoring Processes
Entities subject to AML-CFT regulations are required to conduct extensive Customer Due Diligence (CDD) checks, establish monitoring processes, and follow specific AML and KYC (Know Your Customer) controls during customer onboarding and transactions.
Failure to comply with AML regulations can result in fines from the Government of Cyprus and the European Union. Companies that do not meet these standards remain vulnerable to financial crimes and risk reputational damage.
Strengthening AML Legislation in the Turkish Republic of Northern Cyprus (TRNC)
In the Turkish Republic of Northern Cyprus (TRNC), past audits have identified vulnerabilities to money laundering, particularly in financial institutions and casinos. With insufficient AML legislation in place, financial crimes have reportedly gone undetected. To address this issue, the new Prevention of Money Laundering Law has been strengthened to align with EU directives and FATF regulations.
The Central Bank of TRNC is currently prioritizing efforts to combat money laundering, increasing inspections to ensure compliance. With support from the European Union and the Financial Crimes Investigation Board of Turkey, organizations in Northern Cyprus are undergoing training to improve their AML knowledge and capabilities.
Regular audits of casinos and financial institutions are being conducted, and non-compliance leaves these organizations exposed to significant risks.
Embracing Technology to Maintain Regulatory Compliance: Sanction Scanner
In the increasingly complex regulatory landscape, companies operating in Cyprus need robust tools to manage compliance effectively. Sanction Scanner offers AML solutions to financial institutions and casinos in Cyprus, helping them meet both local and global AML requirements.
By implementing Sanction Scanner’s solutions, businesses can stay ahead of the curve, ensuring not only regulatory compliance but also enhancing their security and reputation.
Contact us today for a demo and experience the peace of mind and heightened security that comes with effective AML-CFT compliance.