Cyprus has made some progress in bettering its stage of compliance with Monetary Motion Activity Pressure (FATF) requirements on combatting cash laundering and the financing of terrorism, in response to a follow-up report printed on Thursday by the Council of Europe’s Committee of Consultants on Cash Laundering and Terrorist Financing (MONEYVAL).
In accordance with a press launch accompanying the report, the Cypriot authorities took a few of the measures bettering the extent of compliance too late to be assessed by MONEYVAL in its observe up process, while different shortcomings have nonetheless to be addressed.
It’s price recalling that in its 2019 preliminary mutual analysis report (MER), MONEYVAL concluded that Cyprus complied or largely complied with 37 of the 40 FATF Suggestions. MONEYVAL requested the Cypriot authorities to report again below its enhanced follow-up process on progress to deal with the remaining shortcomings for the three FATF Suggestions through which Cyprus had been assessed as “partially compliant”.
The follow-up report printed on Wednesday, two years after the publication of the MER, examines a variety of legislative, regulatory and institutional measures taken by the Cypriot authorities regarding threat evaluation and monitoring of its non-profit sector and evaluation by correspondent banks of respondent relationships. It additionally evaluates the powers accessible to investigative authorities to intercept communications and apply managed supply methods to money and bearer negotiable devices.
The follow-up report additionally assesses the implementation of recent worldwide necessities for digital asset service suppliers established in a revised FATF Advice. Cyprus’ score on the implementation of this revised Advice has been downgraded from “largely compliant” to “partially compliant”.
The authorities have taken a number of measures to implement these new FATF necessities, together with the publication in December 2021 of an evaluation of cash laundering and terrorist financing dangers introduced by digital belongings and the associated companies suppliers. Nevertheless, these measures have been taken too late to be assessed within the follow-up report.
Because of this, Cyprus is “compliant” with 16 of the forty FATF Suggestions, “largely compliant” with 20 Suggestions and “partially compliant” with 4 Suggestions (non-profit organisations, correspondent banking, new applied sciences, and powers of regulation enforcement and investigative authorities).
Cyprus has no “non-compliant” scores at this second, the press launch notes.
According to MONEYVAL procedures, the follow-up report examines formal adjustments to Cyprus’ legislative, regulatory, and institutional framework however doesn’t assess the diploma to which these reforms have been successfully carried out in observe.
General, MONEYVAL expects that nations may have addressed most, if not all, shortcomings by the top of the third 12 months from the adoption of their MER. Accordingly, Cyprus is anticipated to report again to MONEYVAL on additional progress to implement the pending suggestions in a single 12 months.
(CNA)