articles | 07 April 2016

Central bank updates anti-money laundering directive

The Central Bank of Cyprus said that it amended an anti-money laundering directive by clarifying and enhancing banks’ ‘Know Your Customer’ obligations, requiring them to know the identity of their customers, as well as their financial profile.

The update also includes stricter requirements “concerning the handling of business relations with third parties, based on which credit institutions need to carry out customer identity checks and due diligence processes,” the central bank said in a statement on its website on Thursday.

The central bank added that it adopted the new directive following consultations with banks.

“On this opportunity, the Central Bank of Cyprus reminds that as it was agreed in March 2013 with the International Monetary Fund, the European Commission and the European Central Bank, (it) put an action plan in place to prevent money laundering and terror financing according to a specific timetable” that extends until 2016, the supervisory authority said.

“The relevant legal and regulatory framework has been significantly updated and further action was taken by credit institutions and parties involved concerning the administrative capacity of implementation,” it said.

The current amendment is part of the continuous effort to further strengthen the regulatory framework which aims at “zero tolerance” of possible shortcomings allowing loopholes for money laundering.

Source: Cyprus Mail

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