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Cyprus’ Transparency Efforts Marred by Capital Flight, Limited Audit
By Colby Adams
printThe terms of an ongoing audit of Cyprus' financial sector and a recent exodus of funds will significantly hinder attempts to identify dirty money with ties to the island-nation, say compliance experts. In March, Cypriot officials agreed to allow the European Union's Moneyval and a third-party private auditor to review the country's anti-money laundering (AML) regime as part of an effort to ensure that an expected bailout wouldn't benefit Russian organized crime groups and other criminals. Under terms of the audit, Moneyval and Deloitte must determine the "level and composition" of foreign-related deposits and loans in Cypriot banks as well...
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