All companies in Cyprus that interact with Banks and the Cyprus Financial Services sector are required to adhere to European Directives subsequently enacted domestically through Cyprus law.
Companies are required to conduct ‘Due Diligence’ checks on their clients for purposes of ensuring that their clients are not involved in Anti-Money Laundering processes and/or Terrorist Financing.
For these purposes, companies establish and maintain ‘compliance processes’ whereby they collect and review documentation, for purposes of carrying out risk assessments to determine whether, or the likelihood that, their clients are involved in such conduct.
Due to the complexity of the Legal and Regulatory Framework governing AML and CTF, and the fact that this framework is under constant review and modification, companies often struggle with maintaining effective processes to ensure continuing compliance with the regulations, and also face time-management and cost-effectiveness issues.
Briefly, entities are required to collect identification documents and documents relating to their clients’ source of funds, known as KYC documents, for purposes of carrying out risk assessments to determine their clients‘ level of risk with respect to AML and TF, and categorize them depending on their findings.
Companies are also required to have an AML Handbook/Manual setting out the procedures they have established, and also prepare reports on their clients whereby they set out their findings and determine their level of risk.
For purposes of ensuring compliance with the regulatory regime, our Firm can assist you in the following manner:
- Draft the company’s compulsory internal AML handbook.
- Regulatory Compliance Consulting for Financial Technology (FinTech)
- Establish and continuously review the company’s internal DD processes and mechanisms for compliance purposes
- Assess, visualize and improve the effectiveness of your compliance programReview and analyse the clients‘ risk assessment and their categorisation.
- Provide Legal advice regarding the legal framework on Anti-Money Laundering & Terrorism Financing Directives and your company’s obligations thereunder