Financial Crime World

Bank of Cyprus Warns of Financial Crime Risk Assessment

Larnaca, Cyprus - March 2022

The Bank of Cyprus (BOC) has released a statement outlining its risk appetite in relation to mitigating financial crime risks, including money laundering and terrorist financing.

Defining Compliance Risk

According to the statement, the bank defines compliance risk as:

The risk of impairment to the organization’s business model, reputation, and financial condition from failure to meet laws and regulations, internal standards, and policies, and expectations of key stakeholders.

Identifying Key Risks

The BOC highlights three main risks concerning ML/TF, with zero tolerance for any violations:

  • Financial Crime Compliance Risk: The risk of impairment to the organization’s business model, reputation, and financial condition from failure to comply with laws and regulations.
  • International Sanctions Compliance Risk: The risk of impairment to the organization’s business model, reputation, and financial condition from failure to comply with international sanctions.
  • Regulatory Compliance Risk: The risk of impairment to the organization’s business model, reputation, and financial condition from failure to comply with regulatory requirements.

Mitigation Measures

To mitigate these risks, the bank has implemented an Anti-Money Laundering (AML) and Combating Terrorist Financing (CTF) program that complies with:

  • Cyprus’ AML Law 188(I) 2007
  • The Central Bank of Cyprus’ AML Directive
  • The Wolfsberg Group’s AML principles and statement concerning terrorist financing

In higher-risk situations, the BOC establishes ongoing processes to detect, prevent, and minimize the likelihood of being used for ML/TF. These measures include:

  • Increased awareness
  • Enhanced due diligence
  • Escalation approval
  • Ongoing monitoring
  • Increased controls and reviews

Disclaimer

The bank warns that any reliance on information contained in this statement is strictly at one’s own risk, and that the BOC will not be liable for any loss or damage arising from the use of this information.