Financial Crime World

Financial Regulator Issues Stern Warning to Industry Players Over Breaches

Financial Intelligence Unit Identifies Breaches of Anti-Money Laundering and Combating the Financing of Terrorism Regulations

Nicosia, Cyprus - The Financial Intelligence Unit (FIU) has issued a public statement identifying several natural and legal persons who have breached anti-money laundering and combating the financing of terrorism regulations. According to the statement, the breaches include failing to submit Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs), as well as engaging in conduct that may facilitate money laundering or terrorist financing.

Measures Taken by FIU

As a result of these breaches, the FIU has taken several measures to address them. The operating licenses of some supervised natural and legal persons have been suspended or withdrawn, while others have been issued orders to cease certain conduct and desist from repeating it. Additionally, the FIU has imposed administrative fines totaling €1 million on some individuals and entities.

Pecuniary Sanctions Imposed

Furthermore, the regulator has ordered the imposition of pecuniary sanctions, which could amount to at least twice the benefit derived from the breach, up to a maximum of €1 million per day. These measures demonstrate the seriousness with which the FIU views breaches of anti-money laundering and combating the financing of terrorism regulations.

Guidelines Issued for Obliged Entities

The FIU has also issued guidelines for obliged entities, including:

  • Credit institutions
  • Financial institutions
  • Estate agents
  • Providers of gambling services
  • Certain professionals such as auditors and lawyers

These guidelines outline the obligations of these entities to submit STRs and SARs, as well as to carry out due diligence on their clients and business relationships.

Importance of “Tipping Off”

The regulator has also highlighted the importance of “tipping off,” which is a criminal offence punishable by up to two years in prison or a fine not exceeding €50,000. It is essential for obliged entities to maintain confidentiality and report suspicious transactions and activities to the FIU.

In related news, the International Compliance Professionals Association (ICPAC) has released a case study pack aimed at raising awareness about money laundering and terrorist financing risks. The pack provides practical examples of how to detect fraudsters, money launderers, and other organized crime networks.

Contact Information for MOKAS

For more information on the FIU’s guidelines and reporting requirements, please contact MOKAS, the agency responsible for receiving STRs and SARs, at: