Cyprus Shows Progress in Anti-Money Laundering Efforts, Moneyval Reports
In a significant stride towards bolstering its financial oversight, Cyprus has received commendations from Moneyval for enhancing its anti-money laundering and counter-terrorism financing measures. The Council of Europe’s committee of experts, Moneyval, acknowledged the country’s efforts in a recent report, while also pointing out areas that still require attention.
The Cypriot government expressed pride in the “significant improvement” recognized by Moneyval, particularly in its adherence to international standards in combating money laundering and terrorism financing. The presidency highlighted that most of the benchmarks set for 2023 had been met, showcasing Cyprus’ dedication to rectifying previous deficiencies.
With an “unwavering commitment” to meet global expectations, the government has reiterated its pledge to combat illicit financial activities. The finance ministry has vowed to persist in its endeavors to mitigate risks associated with money laundering and terrorism financing. In a gesture of appreciation, the ministry extended its gratitude to the local money laundering unit, Mokas, and other supervisory bodies for their relentless efforts that have led to positive outcomes in this assessment.
Moneyval’s report shed light on Cyprus’ improved compliance with the Financial Action Task Force’s (FATF) standards concerning new technologies. It also commended the country for taking steps to enhance oversight of non-profit organizations (NPOs), although it noted that these actions are not yet fully operational.
Despite progress in several areas, challenges remain. The report identified a lack of a formalized document assessing terrorist financing risks within the NPO sector. Furthermore, it found that law enforcement and other authorities lack specific expertise to investigate NPOs potentially exploited for terrorist purposes.
On the technological front, Cyprus has adopted a national action plan for virtual assets and their service providers, marking clear advancement. However, Moneyval pointed out minor deficiencies such as the need for better risk identification related to new business practices and technologies.
As per Moneyval’s evaluation, out of 40 recommendations, Cyprus now has 16 rated as compliant, 21 as largely compliant, and three as partially compliant. The country is slated to report further progress to Moneyval by May 2025, indicating an ongoing journey towards robust compliance and financial integrity.
