Cyprus has made great progress in the fight against money laundering and terrorist financing, according to the latest report by the European expert group Moneyval. In the fourth expanded follow-up report released on Wednesday, the island's AML/CFT (Anti-Money Laundering / Combating the Financing of Terrorism) system was assessed as "broadly compliant" with international standards.

Moneyval, a body of the Council of Europe, regularly reviews the measures taken by member states to combat illicit financial flows. This report placed particular emphasis on the improvement of technical standards in the field of correspondent banking, i.e. financial transactions between banks in different countries. This progress led to an upgrade in the international ranking.

Still some catching up to do among non-profit organizations

Despite the positive evaluation, there are still moderate weaknesses in the area of non-profit organizations (NPOs), according to Moneyval. Here, the rating is only "partially compliant". These organizations are seen as a potential target for terrorist financing – especially if governance, transparency, or financial controls are incomplete.

The Cypriot Ministry of the Interior has already acted in this regard: a risk assessment of the entire NPO sector has been carried out and a report on the terrorist financing risk analysis has been published in November 2024. It is intended to help eliminate existing deficiencies and prevent abuse in the future.

The current overall assessment of Cyprus at a glance:

Such a result clearly shows that there is no serious failure to comply with the in the system – a strong signal to the international community and investors alike.

Cyprus nevertheless remains in Moneyval's extended surveillance procedure and must report on progress again within the next two years. The authorities have announced that they will continue to work on the full implementation of the FATF standards.

Conclusion:

Cyprus is well on its way to establishing a transparent and secure financial system. For investors, companies and emigrants, this is a clear sign of stability and trustworthiness – also vis-à-vis the EU and international partners.

MFRadio.de will follow further developments in the field of financial regulation closely for you. 




Article for MFRadio.de – Redaktion Cyprus News by Tom Weyermann