Cyprus Bar Association Criticizes Government Over Oversight Authority Plans
In a recent turn of events, the Cyprus Bar Association has openly criticized the government for its handling of the proposed oversight authority. The association has expressed that the government is lacking any ounce of seriousness in its approach to establishing this body, which was approved by the cabinet last month.
The criticism followed a presentation at the finance ministry concerning the oversight authority, which has become a subject of increasing controversy. The initiative, as reported by Cyprus Confidential, is intended to rehabilitate the nation’s reputation in the wake of sanctions and persistent allegations of money laundering.
The bar association has highlighted several legal issues within the proposed framework and has accused the finance ministry of not adequately evaluating and presenting “important matters” to the cabinet. This has led to serious weaknesses in the implementation process, according to the association.
Key stakeholders, including the accountant’s association (Selk), anti-money laundering unit (Mokas), fiduciary association (Cyfa), and Securities and Exchange Commission (CySEC), were present at the ministry’s presentation. However, the CBA has made a startling claim that the ministry circulated the wrong document regarding the plans for the new authority, further questioning the government’s commitment to the issue.
The CBA has voiced its disagreement with the current framework, a sentiment echoed by other stakeholders. It was revealed during discussions that contrary to previous understanding, CySEC would not oversee 50 of the largest service industry firms or high-risk companies.
Finance Minister Makis Keravnos had announced that CySEC would lead the new authority and conduct inspections in collaboration with the CBA and Selk. Despite this, the CBA is urging the president and cabinet to re-evaluate their decisions and seek out responsibility for the total lack of seriousness demonstrated thus far.
One major issue raised by the CBA is that involving CySEC could potentially violate client confidentiality. The association maintains that it is legally designated to oversee its members and denies any ulterior motives behind its concerns. Selk has also previously criticized the ministry for failing to consult them before drafting the framework, which is now before parliament for consideration.
