Anti-Money Laundering (AML) in Cyprus

AML Country Guide / Anti-Money Laundering (AML) in Cyprus

Overview of AML  

Cyprus, as a member of the European Union, is obliged to comply with the Anti-Money Laundering (AML) directives. The country is updating its legislation to comply with EU directives and regulations. The European Union and the OECD audit Cyprus in the AML field. Also, AML measures in the country 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.  

AML-CFT Regulators  

A network of watchful and committed officials known as Anti-Money Laundering and Countering the Funding of Terrorism (AML-CFT) regulators leads the fight against money laundering and the funding of terrorism in Cyprus. By enforcing strict laws and rules to identify and prevent illegal financial activity, these regulatory agencies play a crucial part in protecting the integrity of the financial system. These regulators play a vital role in preserving their standing as responsible and trustworthy players in the international economic arena. They are dedicated to enforcing international standards and guaranteeing compliance within the nation's financial institutions. This opening sentence prepares the reader for a more in-depth examination of the significant duties and activities performed by Cyprus's 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  

Which Entities have to comply with AML-CFT Regulations?  

Banks, investment companies, money transfer companies, stock exchange companies, accountants, casinos, and other financial service providers must comply with AML and CFT regulations in Cyprus. These entities perform particular AML and know your customer (KYC) controls during customer onboarding, monitoring processes, and transactions. Companies should determine the customer risk level with Customer Due Diligence (CDD) controls. Under AML laws in Cyprus, organizations must notify MOKAS of suspicious situations during rules. Organizations that do not comply with AML regulations are fined by the Government of Cyprus and the European Union.  

signs that may indicate money laundering and terrorist financing activities, helping to identify and prevent these activities

AML in Northern Cyprus  

In the past review by external regulators, financial institutions and casinos in the Turkish Republic of Northern Cyprus (TRNC) were vulnerable to the Prevention of Money Laundering. Since the Turkish Republic of Northern Cyprus does not have sufficient legislation on AML, it is estimated that criminals have committed large amounts of financial crimes in the past through financial institutions and casinos. In addition, the lack of sufficient knowledge and expertise of AML in financial institutions provided opportunities for financial crimes.  

AML Regulations and Controls Increase in Northern Cyprus

Prevention of Money Laundering Law of the Turkish Republic of Northern Cyprus was published in 1999. TRNC has had AML legislation for more than 20 years; this has been strengthened in recent years to align with EU directives. In their recent statements, officials of the Central Bank of the TRNC say that more attention is paid to the fight against money laundering and that inspections are increasing. The new AML law, in line with EU directives and Financial Action Task Force (FATF) regulations, is expected to be more effective in the fight against financial crimes in the Turkish Republic of Nothern Cyprus. In the Turkish Republic of Northern Cyprus, the Financial Crimes Investigation Board (from Turkey) and the European Union organize training for financial institutions and casinos.  AML audits made by regulators of casinos and financial institutions are increasing. Organizations that do not meet AML obligations remain vulnerable to financial crimes. Organizations that fail to comply with AML face risks of fines and loss of reputation. Sanction Scanner helps financial institutions and casinos in Cyprus meet global and local AML requirements.  

AML Solutions for Cyprus   

For businesses operating in Cyprus, ensuring compliance with an extensive range of laws and regulations is of utmost importance, as it profoundly influences the integrity and stability of the nation's financial sector. Sanction Scanner is committed to delivering advanced technologies tailored to support Cypriot businesses in effectively managing the intricacies of regulatory compliance. Feel free to contact us or request a demo without delay to experience heightened security and peace of mind. 

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