Cyprus

New Documents

Transparency International: EU Should End Golden Visa Schemes

Transparency International (TI) is calling on the European Commission to “propose a roadmap” that will put an end to Golden Visa programs, which have high corruption and money laundering risks, according to TI.

August 24, 2020

GRETA Calls for Additional Anti-Human Trafficking Training for Cypriot Authorities

The Council of Europe’s Group of Experts on Action against Trafficking in Human Beings published its third report on Cyprus, analyzing the jurisdiction’s policies on human trafficking.

June 16, 2020

Moneyval Publishes MER on AML/CTF Regime of Cyprus

February 12, 2020

Cyprus Minister of Finance Highlights AML/CTF Efforts

February 6, 2020

CBC Grants Additional Time for Regulated Entities to Implement Customer Authentication Policies

September 4, 2019

News

EU Takes Aim at ‘Golden Passport’ Programs

European authorities have launched proceedings against Cyprus and Malta following the latest revelations of criminal abuse of citizenship-by-investment programs in the EU’s two southernmost jurisdictions, and opened an inquiry into Bulgaria, which offers a similar scheme.

October 20, 2020

Midweek Roundup: Deutsche Bank Hit with German AML Fine, Germany’s FIU Discovers More Wirecard-linked STRs, and More

Mexican FIU freezes hundreds of bank accounts, FinCEN details red flags of unemployment insurance fraud, and more, in the midweek roundup.

October 14, 2020

Weekly Roundup: Western Union Targets COVID-19 Fraud, Bank Shares Drop After FinCEN Files, and More

September 25, 2020

Weekly Roundup: JPMorgan Chase Fired Staff Over Coronavirus Loan Fraud, Austria Investigates Bank Executive, and More

September 11, 2020

Midweek Roundup: EU Probes Visa’s Fintech Controls, Mishcon de Reya Law Firm Under UK Investigation, and More

September 9, 2020

Enforcement Actions

CySEC: IQ Option Europe Ltd Pays €450,000 to Settle Possible AML Violations

The Cyprus Securities and Exchange Commission issued a board decision reaching an agreement with IQ Option Europe Ltd, under which the company agreed to pay €450,000 to settle possible violations of the Prevention and Suppression of Money Laundering Activities Law.

June 7, 2019

Central Bank of Cyprus Fines RCB Bank Ltd. €800,000 for AML Failures

The Central Bank of Cyprus issued a monetary penalty against the Limassol, Cyprus-based bank for violations of the Prevention and Suppression of Money Laundering Activities Laws of 2007 to 2016 and the Prevention of Money Laundering and Terrorist Financing Directive, December 2013.

December 6, 2017

Central Bank of Cyprus Fines Jordan Kuwait Bank €1,205,000 for AML Violations

November 23, 2016

Central Bank of Cyprus Fines Hellenic Bank Public Company Ltd. €1,145,000 for AML Violations

July 15, 2016

Central Bank of Cyprus Fines Hellenic Bank Public Company Ltd. €1,145,000 for AML Violations

July 15, 2016

Key Documents

Cyprus Amends Main AML/CTF Law

September 22, 2010

Cyprus Outlines AML/CTF Obligations to Securities, Investment Industries

November 26, 2012

Cyprus Harmonizes Its Anti-Terrorism Law with International Convention

July 22, 2005

Important Facts

  • The U.S. State Department labels Cyprus as a major money laundering country. As of the end of 2018, a total of 216,239 companies were registered in Cyprus, many owned by nonresidents. All companies registered in Cyprus must disclose their ultimate beneficial owners to the authorities, but some Cypriot law and accounting firms help construct layered corporate entities to mask the identities of financial beneficiaries. Experts agree that the Cypriot financial system is vulnerable to money laundering by domestic and foreign criminal enterprises, although proceeds generated abroad pose a greater threat. Risks also emanate from layering activities, mainly from international business through banking transactions. The main criminal sources of illicit proceeds are investment fraud, corruption, advance fee fraud, tax evasion, illegal drugs, tobacco smuggling. Additionally, cybercrime cases continue to increase, especially phishing, e-mail hacking, and the use of ransomware. The State Department also outlined Cyprus’ citizenship-by-investment program, which allows foreign investors to apply for Cypriot citizenship after investing more than $2.2 million in Cyprus, including investments in any combination of real estate, infrastructure projects or Cypriot companies. Following pressure from the EU and United States, the Cyprus tightened eligibility criteria and oversight in 2018 and 2019 by introducing a cap in the number of citizenships granted annually at 700, among other measures. Cypriot legislation covers rules for both foreign and domestic politically exposed persons. In 2018, Cypriot authorities convicted 26 persons for money laundering offenses. The Central Bank of Cyprus also issued a circular in 2018, advising banks to be extra vigilant against shell companies and letter-box companies, and to avoid doing business with them.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 16 High : 0
Largely Compliant : 21 Substantial : 3
Partially Compliant : 3 Moderate : 8
Non-Compliant : 0 Low : 0

BASEL i

Rank : 88/141
Score : 4.81/10

TRANSPARENCY INTERNATIONAL i

Rank : 41/180
Score : 58/100

Tax Justice Network i

Rank : 27/133
Score : 61/100