Cyprus Will Continue To Fight Against Money Laundering

Posted on November 17, 2008
Filed Under Finance |

Sir, We refer to the article “Cyprus risks being a haven for euro launderers” (July 27) by Roger-Louis Cazalet. The author makes certain assertions that put in question the effectiveness of the implementation of measures taken in Cyprus to combat money laundering, based on a so-called “assessment report” by the Pantheon-Assas University (Paris II) in May. This report was drafted without any contact with the Cypriot authorities for up-to-date information, and its author used, oddly enough for an academic study, the pseudonym “Sasha Valette”.

Cyprus’s anti-money laundering system has repeatedly been evaluated by the experts of the Moneyval Committee of the Council of Europe, a financial action task force (FATF) styled regional body, which has subsequently issued detailed assessment reports. The last report, in February 2006, following an on-site mission in April 2005, was based on a detailed methodology elaborated by the FATF, in co-operation with the International Monetary Fund/World Bank.

The Moneyval report contains a significant number of positive comments and statements regarding the efficiency and effectiveness of measures taken by Cyprus and commends the authorities for their willingness to reduce the vulnerability of financial institutions and designated non-financial business and professions to money laundering.

The ratings assigned to Cyprus vis-a-vis the international standards (FATF Recommendations) compare favourably with the corresponding ratings of other EU member states as well as other countries with developed financial systems. Similar evaluation reports of other countries contain a higher number of shortcomings identified and recommendations for improvement, even on more serious issues, compared with the Report on Cyprus.

The “assessment report” of the Pantheon-Assas University (Paris II) author was mainly based on the Moneyval assessment report, from which he/she has drawn only the few points/recommendations which called for improvement, thus creating the wrong impression about the efficiency of Cyprus’s anti-money-laundering (AML) system. Contrary to the article, “gatekeeper” professionals in Cyprus, including lawyers and accountants, are subject to AML law and required to implement customer identification, including beneficial ownership and other preventive measures.

The Cyprus law enforcement authorities and the Financial Intelligence Unit (MOKAS) have unhindered access to the identification details of ultimate beneficial owners of all companies registered or maintaining a bank account in Cyprus. References in the article to the number of reported suspicious transactions and convictions are completely wrong and well below the actual figures. The writer has apparently obtained these numbers from the latest Moneyval evaluation report, which refer to a limited number of years and do not cover the whole period from the enactment of the law. This is another good example of inaccuracies found in the article.

We wish to emphasise that the Cypriot authorities will continue to demonstrate the willingness exhibited so far in the fight against money laundering and terrorist financing in accordance with international standards.

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Best wishes,
Emmanuel Ayomide Praise
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www.emmapraise.blogspot.com

Emmanuel Ayomide Praise is a world leading internet marketer, e-commerce professional, wealth creation agent, public/motivational speaker and media consultant. He is available on the internet at
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http://www.emmapraise.blogspot.com

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