Financial Crime World

Title: Cyprus Cracks Down on Money Laundering: AML-CFT Regulators Strengthen Enforcement in EU Member State

Cyprus’s Efforts to Combat Money Laundering and Terrorist Financing

As a European Union (EU) member, Cyprus is under international scrutiny to combat money laundering and terrorist financing (ML/FT) activities within its financial sector. The island nation is updating its legislation to align with EU directives and regulations, with involvement from organizations such as the European Union, OECD, and the Council of Europe’s Moneyval.

AML-CFT Regulators and Their Role in Maintaining Financial Integrity

The following entities are Cyprus’s Anti-Money Laundering and Countering the Funding of Terrorism (AML-CFT) regulators:

  • 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

The role of these organizations is critical in identifying and preventing illicit financial activities within Cyprus’s financial institutions. There are international standards to be met and maintained.

Entities Subject to AML-CFT Regulations in Cyprus

Entities subject to AML-CFT regulations in Cyprus include:

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

These entities carry out client onboarding and transactional AML and know-your-customer (KYC) checks. Risk assessments, or Customer Due Diligence (CDD) controls, help determine each customer’s risk level. Cyprus’s AML laws require reporting of suspicious situations to MOKAS; failure to comply with regulations may result in fines from both the Government of Cyprus and the EU.

Addressing ML/FT in the Turkish Republic of Northern Cyprus (TRNC)

Historically, financial institutions and casinos in the TRNC were targeted for ML/FT activities. With inadequate AML legislation and expertise within these institutions, criminals reportedly carried out significant financial crimes. The TRNC has since published its Prevention of Money Laundering law (1999) and is focusing on strengthening its AML regulations to align with EU directives and FATF standards. Enhanced attention is being paid to combating ML/FT, with increasing inspections and joint training programs being offered with the Financial Crimes Investigation Board (from Turkey) and the EU.

AML Audits and Compliance

AML audits are becoming more frequent, with financial institutions and casinos in both Southern and Northern Cyprus expected to meet AML obligations. Failure to do so leaves them vulnerable to financial crimes and potential fines. Sanction Scanner offers advanced solutions to assist organizations in effectively meeting local and global AML requirements.

Implications for Cypriot Businesses

Compliance with a multitude of ever-evolving regulations is crucial for businesses operating in Cyprus, as the implications for the nation’s financial sector are significant. Sanction Scanner is dedicated to delivering cutting-edge technology designed to support Cypriot businesses in effectively managing their complex regulatory compliance needs.

Contact Sanction Scanner for Assistance

Interested businesses are invited to contact Sanction Scanner for assistance in effectively managing their regulatory compliance needs and ensuring heightened security and peace of mind. Request a demo to discover the benefits.