Anti money laundering services

Money laundering is the processing of these criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables criminals to enjoy these profits without jeopardizing their source.

Illegal arms sales, smuggling, and the activities of organized crime, including, for example, drug trafficking and prostitution rings, can generate huge amounts of proceeds. As well as embezzlement, insider trading, bribery and computer fraud schemes can produce large profits and create the incentive to “legitimize” the ill-gotten gains through money laundering.

Prevention of corruption, prevention of bribery, prevention of tax evasion are also under the scope of the AML legislation.

To control the funds without attracting attention to the underlying activity or the persons involved criminals disguise the sources, change the form of activity, or move the funds to a place where they are less likely to attract attention.

Cyprus has a strong AML legal framework, which it continues to upgrade. Cypriot authorities are periodically doing a national risk assessment (NRA) of money laundering and terrorist financing vulnerabilities. Following adoption of the NRA an action plan is addressing possible deficiencies or areas for improvement.

With thousands of customers, banks have fielded automated transaction monitoring systems, which use money laundering detection scenarios known as rules, to alert to certain customers for potential violations.

The AMLCO must develop an effective suspicious activity monitoring and reporting policy and should also establish an internal reporting procedure that enables relevant employees to disclose their knowledge or suspicions of ML/TF as soon as it is practically possible by filing an Internal Suspicion Report.

The AMLCO has the duty to validate and consider the information received through the Internal Suspicion Report by reference to any other relevant information, including monitoring and investigating transactions and discuss the circumstances of the case with the reporting employee concerned and, where appropriate, with the employee’s superior(s).

The evaluation of the information reported to the Compliance Officer should be recorded and retained on file.

Should the AMLCO assess the activity or transaction as suspicious, he/she has the obligation to file a SAR or a STR accordingly to MOKAS (Financial Intelligence Unit of Cyprus) the soonest possible.