Comprehensive compliance for combating money laundering
At a time of complex regulatory and working environment, tough enforcement and stiff penalties, understanding anti-money laundering compliance responsibilities and comprehensively deploying compliance resources is more important than ever for a range of financial institutions.
Financial institutions must not only be prepared for constantly emerging money laundering risks, but also adapt to new laws and heightened regulatory expectations.
In order to navigate unprecedented challenges facing compliance, financial institutions must be constantly updated of global developments and changes in ML and terrorist financing. As the world changes, so do the risks.
Updates in relation to new trends, emerging technologies in anti-money laundering and combating the financing of terrorism (AML/CFT), cybercrime and correspondent banking are very important to achieve a comprehensive compliance programme.
Thus, forums like this one, help to share thoughts and concerns and understand the underlying issues better.
Cyprus has implemented a comprehensive framework to combat money laundering and terrorist financing. As a regional and international business centre, Cyprus places the fight against money-laundering among its top domestic and foreign policy priorities retaining and elevating in this way its credibility, integrity and quality as a business centre.
Over the past few years, the Cyprus AML/CFT Framework has been proactively enhanced with requirements included in the Fourth EU AML Directive, the Financial Action Task Force (FATF) recommendations and other international standards and best practices, promoting amongst other financial transparency.
The Fourth AML requirements, such as the addition of tax crimes in the definition of predicate offences and the inclusion of domestic politically exposed person (PEPs) in AML predicate offences, have long been implemented in the Cyprus regulatory framework.
Regulatory measures have been i mposed on credit institutions ensuring the further enhancement of the “know your customer” (KYC) principle and the requirements regarding the handling of business relationships with third parties.
Cyprus credit institutions have proven their long-standing commitment to promote the implementation of sound AML/CFT policies and procedures that are critical in protecting the safety and soundness of credit institutions and the integrity of the financial system. met most of the terms of its international lenders.
Economic conditions have continued to improve in 2016. Real GDP growth reached 2.8% in 2016, up from 1.7% in 2015, as the economy continued to expand for the second consecutive year after three years of economic recession. High growth is forecasted to continue in 2017, according to promising leading indicators across the economy, such as strong tourism arrivals, increase in property transactions and a rebound in vehicle registrations.
Moderate growth in the euro area is further strengthening economic conditions and economic sentiment in Cyprus. Additionally, the expansionary policies of the European Central Bank have been supportive of the recovery in Cyprus as well as in the periphery.