CYPRUS MAKES PROGRESS IN COMBATING MONEY LAUNDERING AND TERRORISM FINANCING, BUT SHORTCOMINGS REMAIN

Strasbourg, November 25, 2022 - Report by MONEYVAL

Cyprus has taken steps to improve its compliance with international standards on combating money laundering and terrorism financing, but significant shortcomings still persist, according to a report published by the Council of Europe’s Committee of Experts on Money Laundering and Terrorist Financing (MONEYVAL).

Improvements and Shortcomings

The latest follow-up report examines a range of measures taken by the Cypriot authorities to combat financial crime, including those aimed at:

• Non-profit organizations
• Virtual asset services providers
• The powers of investigative and law enforcement authorities

While Cyprus has made progress in implementing certain measures, moderate shortcomings remain. Specifically:

• The country’s risk assessment and monitoring of its non-profit sector are still incomplete.
• Its powers to intercept communications and apply controlled delivery techniques for cash and bearer negotiable instruments are limited.
• The regime for virtual asset services providers is incomplete, with no national action plan to address identified risks and technical deficiencies in the implementation of preventive measures.

Compliance Rating

As a result, Cyprus remains:

• “Compliant” with 16 of the 40 Financial Action Task Force (FATF) recommendations
• “Largely compliant” with 20
• “Partially compliant” with four
• No “non-compliant” ratings

The MONEYVAL report does not assess the effectiveness of these reforms in practice, but rather examines formal changes to Cyprus’ legislative, regulatory, and institutional framework.

Next Steps

Cyprus is expected to report back on further progress implementing pending recommendations in one year.

Access the Full Report

The full report can be accessed through [link provided below].