Financial Crime World

Title: Cyprus Cracks Down on Financial Crimes: AML Regulators and New Legislation in Action

As a European Union (EU) member, Cyprus is committed to strict Anti-Money Laundering (AML) directives: The Mediterranean island nation is updating its legislation to align with EU regulations. In recent years, Cyprus has undergone numerous international evaluations by the European Union, the OECD, and the Council of Europe’s Moneyval Committee to ensure effective AML measures.

Cyprus’s Robust Network of AML-CFT Regulators

  • The Central Bank of Cyprus
  • The Unit for Combating 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 regulatory bodies enforce strict laws and rules to identify and prevent illicit financial activity.

Entities Obligated to Comply with AML-CFT Regulations

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

These entities perform:

  1. Thorough Know Your Customer (KYC) checks during onboarding
  2. Monitoring transactions
  3. Maintaining ongoing risk assessments

AML Measures in the Turkish Republic of Northern Cyprus (TRNC)

There are weaknesses in AML measures in TRNC:

  1. Historically, financial institutions and casinos have been vulnerable to money laundering activities due to insufficient legislation.
  2. Large-scale financial crimes have been committed through these channels.

Efforts have been made to strengthen TRNC’s financial regulatory landscape by:

  1. Aligning its AML laws with EU directives and FATF regulations.
  2. Organizing training programs for financial institutions and casinos to promote greater understanding and expertise in AML matters.

Enhanced AML Inspections and Audits in TRNC

  • Regular inspections and audits of casinos and financial institutions are increasing.
  • Failure to meet AML obligations leaves organizations vulnerable to financial crimes, reputational damage, and potential fines.

Sanction Scanner Assists Businesses in Adhering to AML Requirements

Sanction Scanner helps financial institutions and casinos in Cyprus adhere to global and local AML requirements. It minimizes risks, such as:

  • Financial crimes
  • Reputational damage
  • Potential fines

Regulatory Compliance is Crucial for Cypriot Businesses

Maintaining the integrity and stability of Cyprus’s financial sector requires businesses to ensure regulatory compliance. Sanction Scanner provides advanced technologies tailored to Cypriot businesses to manage the complexities of AML regulations efficiently and effectively.

To learn more and request a demo, contact us without further delay.