Cyprus is considered a high-risk country for anti-money laundering.
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Cyprus is considered a high-risk country for anti-money laundering due to its strategic geographic location between Europe, Asia, and Africa, as well as its economic ties with Russia and other countries. According to the US Department of State’s 2020 International Narcotics Control Strategy Report, “money laundering is a significant problem in Cyprus due to its status as an offshore financial center, lax enforcement, and relatively weak regulatory laws.” The report also notes that “certain sectors, such as real estate, the casino industry, and professional services, are particularly vulnerable to money laundering.”
Additionally, Cyprus has been associated with a number of high-profile money laundering cases, including the 2019 scandal involving FBME Bank, which was accused of facilitating money laundering and terrorist financing. The European Union has also criticized Cyprus for its lax anti-money laundering controls, and the country has faced pressure from international organizations to strengthen its regulatory framework.
In an article for The Guardian, Transparency International’s Rachel Davies Teka stated, “Cyprus has regularly been highlighted as a hot spot for financial crime, with allegations of systemic money laundering, including through the citizenship by investment scheme.” The article also highlights the role of Russian individuals and companies in the country’s economy, stating that “Russian businesses and investors have long been drawn to Cyprus, using it as a base to invest in Europe and beyond.”
– Vulnerable sectors (real estate, casinos, and professional services)
– Association with high-profile money laundering cases
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Cyprus has made progress in implementing anti-money laundering (AML) measures in accordance with Financial Action Task Force (FATF) standards, although there is still room for improvement. There is a lack of a nationwide implementation plan to address risks in the sector, which has led to inefficiencies in implementing countermeasures and specifically highlights the need to improve the implementation of the travel rule.
On the Internet, there are additional viewpoints
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cyprus was undertaken in 2022. According to that Evaluation, Cyprus was deemed Compliant for 16 and Largely Compliant for 20 of the FATF 40 Recommendations.
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What is the AML law in Cyprus?
The response is: On the 21st of June 2022 the CYSEC announced the translation o the Cyprus AML Law in English. The prevention and suppression of money laundering and terrorist financing law 2007 – 2021 forms the backbone of combating money laundering and terrorist financing for Cyprus.
Is Cyprus FATF Compliant?
Response to this: Cyprus is “compliant” with 16 of the forty FATF Recommendations, “largely compliant” with 20 Recommendations and “partially compliant” with four Recommendations (non-profit organisations, correspondent banking, new technologies, and powers of law enforcement and investigative authorities).
Which countries are low risk for AML?
The weakest area is the quality of AML/CFT frameworks. New Zealand retains the top place as the lowest-risk country, despite an increased risk score following a new FATF evaluation. There are high trafficking risks in China, Malaysia, and Myanmar.
Answer: That being said, Cyprus aims to be in full compliance with the AML European framework, and in this respect constantly implements changes in its local laws to align with EU directives and regulations. Cyprus’ latest MONEYVAL evaluation was during May 13-24, 2019.
What is Cyprus's anti-money laundering policy?
The answer is: The European Union and the OECD audit Cyprus in the Anti-Money Laundering field. Also, Cyprus’s AML measures have been internationally evaluated several times in recent years by the Council Europe Committee Moneyval. Cyprus aims to combat financial crimes with these AML measures.
What are the AML-CFT regulations in Cyprus?
Cyprus aims to combat financial crimes with these AML measures. The Authority for the Supervision and Development of Cooperative Societies The Council of the Institute of Certified Public Accountants Cyprus is more effective in combating financial crimes with its AML regulations. Which Entities have to comply with AML-CFT Regulations in Cyprus?
What is the Basel AML index?
The Basel AML Index measures the risk of money laundering and terrorist financing of countries based on publicly available sources. A total of 14 indicators that deal with AML/CFT regulations, corruption, financial standards, political disclosure and rule of law are aggregated into one overall risk score.
Is Cyprus AML compliant?
Response will be: Cyprus is updating its legislation to comply with EU directives and regulations. The European Union and the OECD audit Cyprus in the Anti-Money Laundering field. Also, Cyprus‘s AML measures have been internationally evaluated several times in recent years by the Council Europe Committee Moneyval.
What are the AML-CFT regulations in Cyprus?
Cyprus aims to combat financial crimes with these AML measures. The Authority for the Supervision and Development of Cooperative Societies The Council of the Institute of Certified Public Accountants Cyprus is more effective in combating financial crimes with its AML regulations. Which Entities have to comply with AML-CFT Regulations in Cyprus?
What is Cyprus's anti-money laundering policy?
The European Union and the OECD audit Cyprus in the Anti-Money Laundering field. Also, Cyprus‘s AML measures have been internationally evaluated several times in recent years by the Council Europe Committee Moneyval. Cyprus aims to combat financial crimes with these AML measures.
How much should a firm be fined for AML/CCT failures in Cyprus?
The answer is: Two fines, one of EUR 300,000 and one of EUR 450,000 (the latter in May 2019) for firms, albeit combined with non-AML/CFT matters are of a sufficient size to demonstrate an appetite to apply larger fines in the context of Cyprus even if no large fine has been applied solely for AML/CCT failures.
