Local
articles | 23 May 2013

Cyprus proceeds with assessment of Customer Due Diligence in banks

Cyprus has agreed to proceed with an in depth assessment of the effective implementation of Customer Due Diligence (CDD) requirements in the Cyprus banks, through relevant evaluations by MONEYVAL and Deloitte Italy.

The nature and depth of these assessments are unique and have never been carried out in any other jurisdiction, says a Ministry of Finance spokeswoman. The outcome of the assessments by the two institutions indicates a solid level of compliance across the sector. 

On the assessment of Customer Due Diligence (CDD), Deloitte Italy said that the results of the audit appear to indicate a generally solid level of compliance across the six banks with 4 out of 27 areas on CDD requiring further attention. 

MONEYAL respectively said: “In general, the banks interviewed demonstrated high standards of knowledge and experience of AML/CFT issues, an intelligent awareness of the reputational risks they faceand a broad commitment to implementing the customer due diligence (CDD) requirements set out in the law and in subsidiary regulations issued by the Central Bank of Cyprus (CBC). Implementation of CDD measures, as described by the banks, appeared strong under most headings.”

The relevant Reports also indicate weakness areas needing further improvement. Cyprus authorities in collaboration with Troika partners are committed to fully address these weaknesses.

Cyprus continues its commitment to fight money laundering and terrorist financing through continuous enhancement of its framework. To this end, amongst other, it has repeatedly been assessed on its framework and its implementation by Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) receiving overall positive evaluations.  At the same time the authorities have been addressing the relevant weaknesses raised after each evaluation.

The nature and depth of these assessments are unique and have never been carried out in any other jurisdiction, says a Ministry of Finance spokeswoman. The outcome of the assessments by the two institutions indicates a solid level of compliance across the sector. 

On the assessment of Customer Due Diligence (CDD), Deloitte Italy said that the results of the audit appear to indicate a generally solid level of compliance across the six banks with 4 out of 27 areas on CDD requiring further attention. 

MONEYAL respectively said: “In general, the banks interviewed demonstrated high standards of knowledge and experience of AML/CFT issues, an intelligent awareness of the reputational risks they faceand a broad commitment to implementing the customer due diligence (CDD) requirements set out in the law and in subsidiary regulations issued by the Central Bank of Cyprus (CBC). Implementation of CDD measures, as described by the banks, appeared strong under most headings.”

The relevant Reports also indicate weakness areas needing further improvement. Cyprus authorities in collaboration with Troika partners are committed to fully address these weaknesses.

Cyprus continues its commitment to fight money laundering and terrorist financing through continuous enhancement of its framework. To this end, amongst other, it has repeatedly been assessed on its framework and its implementation by Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) receiving overall positive evaluations.  At the same time the authorities have been addressing the relevant weaknesses raised after each evaluation.

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