DOCSLIB.ORG

Moneyval Mutual Evaluation Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Moneyval Mutual Evaluation Report COMMITTEE OF EXPERTS ON THE EVALUATION OF ANTI-MONEY LAUNDERING MEASURES AND THE FINANCING OF TERRORISM (MONEYVAL) MONEYVAL(2019)27 Anti-money laundering and counter-terrorist financing measures Cyprus Fifth Round Mutual Evaluation Report December 2019 0 The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism - MONEYVAL is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, as well as with the task of making recommendations to national authorities in respect of necessary improvements to their systems. Through a dynamic process of mutual evaluations, peer review and regular follow-up of its reports, MONEYVAL aims to improve the capacities of national authorities to fight money laundering and the financing of terrorism more effectively. All rights reserved. Reproduction is authorised, provided the source The fifth-round mutual is acknowledged, save where otherwise stated. For any use for evaluation report on Cyprus commercial purposes, no part of this publication may be translated, was adopted by the reproduced or transmitted, in any form or by any means, electronic MONEYVAL Committee at its (CD-ROM, Internet, etc.) or mechanical, including photocopying, 59th Plenary Session recording or any information storage or retrieval system without (Strasbourg, 2-6 December prior permission in writing from the MONEYVAL Secretariat, 2019). Directorate General of Human Rights and Rule of Law, Council of Europe (F-67075 Strasbourg or [email protected]) 1 CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................................ 4 Key Findings ............................................................................................................................................................................. 4 Risks and General Situation ............................................................................................................................................... 5 Overall Level of Compliance and Effectiveness ......................................................................................................... 5 Priority Actions .................................................................................................................................................................... 11 Effectiveness & Technical Compliance Ratings ...................................................................................................... 12 MUTUAL EVALUATION REPORT ...................................................................................................................................... 13 Preface ..................................................................................................................................................................................... 13 1. ML/TF RISKS AND CONTEXT ........................................................................................................................................ 15 1.1. ML/TF Risks and Scoping of Higher Risk Issues ............................................................................................ 15 1.2. Materiality ...................................................................................................................................................................... 18 1.3. Structural Elements ................................................................................................................................................... 18 1.4. Background and Other Contextual Factors ...................................................................................................... 18 2. NATIONAL AML/CFT POLICIES AND COORDINATION ...................................................................................... 27 2.1. Key Findings and Recommended Actions ........................................................................................................ 27 2.2. Immediate Outcome 1 (Risk, Policy and Coordination) ............................................................................. 28 3. LEGAL SYSTEM AND OPERATIONAL ISSUES .......................................................................................................... 38 3.1. Key Findings and Recommended Actions ........................................................................................................ 38 3.2. Immediate Outcome 6 (Financial Intelligence ML/TF)............................................................................... 42 3.3. Immediate Outcome 7 (ML investigation and prosecution) ..................................................................... 57 3.4. Immediate Outcome 8 (Confiscation) ................................................................................................................ 69 4. TERRORIST FINANCING AND FINANCING OF PROLIFERATION ................................................................... 80 4.1. Key Findings and Recommended Actions ........................................................................................................ 80 4.2. Immediate Outcome 9 (TF investigation and prosecution) ...................................................................... 83 4.3. Immediate Outcome 10 (TF preventive measures and financial sanctions) ..................................... 91 4.4. Immediate Outcome 11 (PF financial sanctions)........................................................................................... 96 5. PREVENTIVE MEASURES .............................................................................................................................................. 101 5.1. Key Findings and Recommended Actions ...................................................................................................... 101 5.2. Immediate Outcome 4 (Preventive Measures) ............................................................................................. 102 6. SUPERVISION ..................................................................................................................................................................... 118 6.1. Immediate Outcome 3 (Supervision) ............................................................................................................... 120 7. LEGAL PERSONS AND ARRANGEMENTS ................................................................................................................ 157 7.1. Immediate Outcome 5 (Legal Persons and Arrangements) .................................................................... 158 8. INTERNATIONAL COOPERATION.............................................................................................................................. 168 8.1. Immediate Outcome 2 (International Cooperation) .................................................................................. 169 TECHNICAL COMPLIANCE ANNEX ................................................................................................................................ 192 Recommendation 1 – Assessing risks and applying a risk-based approach ................................................. 192 Recommendation 2 - National Cooperation and Coordination .......................................................................... 194 Recommendation 3 - Money laundering offence ...................................................................................................... 195 Recommendation 4 - Confiscation and provisional measures ........................................................................... 196 2 Recommendation 5 - Terrorist financing offence .................................................................................................... 199 Recommendation 6 - Targeted financial sanctions related to terrorism and terrorist financing ........ 201 Recommendation 7 – Targeted financial sanctions related to proliferation ................................................ 205 Recommendation 8 – Non-profit organisations ....................................................................................................... 207 Recommendation 9 – Financial institution secrecy laws ...................................................................................... 211 Recommendation 10 – Customer due diligence ....................................................................................................... 211 Recommendation 11 – Record-keeping ....................................................................................................................... 214 Recommendation 12 – Politically exposed persons ................................................................................................ 215 Recommendation 13 – Correspondent banking ....................................................................................................... 216 Recommendation 14 – Money or value transfer services .................................................................................... 216 Recommendation 15 – New technologies ................................................................................................................... 217 Recommendation 16 – Wire transfers .......................................................................................................................... 218
Load more

Recommended publications
  • 1 Policy Title Anti-Money Laundering Policy and Anti-Corruption
    Policy Title Anti-Money Laundering Policy and Anti-Corruption Compliance Policy Entity Embassy Office Parks Management Services Private Limited (“Company”), the Embassy Office Parks REIT (“REIT”), its special purpose vehicles (“SPVs”), its holding company (“Holdco”) and Golflinks Software Park Private Limited (“Investment Entity”) Responsibility for Compliance Officer of the Company ensuring Compliance PART A Anti-Money Laundering Policy General Provisions Applicability This Anti-Money Laundering Policy (“AML Policy”) is applicable to the Company (in its capacity as Manager of the REIT), the REIT, its SPVs, its Holdco and the Investment Entity (the Company, the REIT, its SPVs, its Holdco and the Investment Entity, collectively referred to as “REIT Entities”, and individually as a “REIT Entity”) Purpose This AML Policy aims to establish the controls around prevention of money laundering (“AML”) in the REIT Entities and is in accordance with the Prevention of Money-Laundering Act, 2002 (“PMLA”). The Anti-Money Laundering regulators in India include: a. the Securities and Exchange Board of India (“SEBI”); b. the Reserve Bank of India (“RBI”); c. the Directorate of Enforcement, Central Bureau of Investigation – Economics Offences Wing; and d. the Income Tax Department, Government of India. The objective of this AML Policy is to: a. To create awareness among REIT Personnel about the legal and regulatory framework for AML requirements; b. To interpret the obligations under the PMLA and the rules notified thereunder, and how they may be implemented in practice; and c. To align the REIT Entities’ operations with best industry practices in AML procedures. Money Money laundering refers to the process of concealing the source of illegally obtained money.
    [Show full text]
  • Trade-Based Money Laundering: Trends and Developments
    Trade-Based Money Laundering Trends and Developments December 2020 The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CFT) standard. For more information about the FATF, please visit www.fatf-gafi.org This document and/or any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The goal of the Egmont Group of Financial Intelligence Units (Egmont Group) is to provide a forum for financial intelligence unites (FIUs) around the world to improve co-operation in the fight against money laundering and the financing of terrorism and to foster the implementation of domestic programs in this field. For more information about the Egmont Group, please visit the website: www.egmontgroup.org Citing reference: FATF – Egmont Group (2020), Trade-based Money Laundering: Trends and Developments, FATF, Paris, France, www.fatf-gafi.org/publications/methodandtrends/documents/trade-based-money-laundering-trends-and- developments.html © 2020 FATF/OECD and Egmont Group of Financial Intelligence Units. All rights reserved. No reproduction or translation of this publication may be made without prior written permission. Applications for such permission, for all or part of this publication, should be made to the FATF Secretariat, 2 rue André Pascal 75775 Paris Cedex 16, France (fax: +33 1 44 30 61 37 or e-mail: [email protected]) Photo credits cover photo ©Getty Images TRADE-BASED MONEY LAUNDERING: TRENDS AND DEVELOPMENTS | 1 Table of Contents Acronyms 2 Executive summary 3 Key findings 3 Conclusion 5 Introduction 7 Background 7 Purpose and report structure 8 Methodology 10 Section 1.
    [Show full text]
  • Chinese Underground Banking and 'Daigou'
    Chinese Underground Banking and ‘Daigou’ October 2019 NAC/NECC v1.0 Purpose This document has been compiled by the National Crime Agency’s National Assessment Centre from the latest information available to the NCA regarding the abuse of Chinese Underground Banking and ‘Daigou’ for money laundering purposes. It has been produced to provide supporting information for the application by financial investigators from any force or agency for Account Freezing Orders and other orders and warrants under the Proceeds of Crime Act 2002. It can also be used for any other related purpose. This document is not protectively marked. Executive Summary • The transfer of funds for personal purposes out of China by Chinese citizens is tightly regulated by the Chinese government, and in all but exceptional circumstances is limited to the equivalent of USD 50,000 per year. All such transactions, without exception, are required to be carried out through a foreign exchange account opened with a Chinese bank for the purpose. The regulations nevertheless provide an accessible, legitimate and auditable mechanism for Chinese citizens to transfer funds overseas. • Chinese citizens who, for their own reasons, choose not to use the legitimate route stipulated by the Chinese government for such transactions, frequently use a form of Informal Value Transfer System (IVTS) known as ‘Underground Banking’ to carry them out instead. Evidence suggests that this practice is widespread amongst the Chinese diaspora in the UK. • Evidence from successful money laundering prosecutions in the UK has shown that Chinese Underground Banking is abused for the purposes of laundering money derived from criminal offences, by utilising cash generated from crime in the UK to settle separate and unconnected inward Underground Banking remittances to Chinese citizens in the UK.
    [Show full text]
  • Cyprus Police Academy
    CONFERENCE ON ACCESSION Brussels, 11 January 2002 TO THE EUROPEAN UNION - CYPRUS - CONF-CY 4/02 Document provided by Cyprus PUBLIC Chapter 24: Cooperation in the Fields of Justice and Home Affairs ACTION PLAN FOR THE ADOPTION OF THE SCHENGEN ACQUIS (Revised December 2001) A. BORDER CONTROL A.(I) External Border Control (I) Current Situation (a) Legislative transposition Cyprus΄ legislation is considerably aligned with the Schengen acquis. The current legislation empowers the Police and other law enforcement authorities, to carry out the function of border control. In the framework of Cyprus’ harmonization process, the Carriers Liability Law was enacted on 23.3.2000 in accordance with SCH/Com-ex (p8) 37 def. “Action Plan to Combat illegal immigration”. The Law will enter into force upon accession. (b) Implementation and enforcement of the Schengen acquis Cyprus has two international airports, two main seaports and four small seaports. The organizations responsible for immigration and border control issues, are the The Services involved in border control are the Police, (the Ports and Marine Police, the Police Airwing and the Police Aliens and Immigration Department) the Department of Customs and Excise, the Aliens and Immigration Service of the Ministry of Interior, the Ministry of Interior, the Civil Aviation Department and the Cyprus Ports Authority. These Services cooperate with each other and with foreign law enforcement agencies (in compliance with the Schengen acquis SCH/COM-ex(93) 9-14.12.93) in a satisfactory manner and coordinate their actions through a number of coordination mechanisms which bring together two or more of these Services for discussion of border control issues and for policy decisions.
    [Show full text]
  • Response of the Government of Cyprus to the Report of The
    CPT/Inf (2018) 17 Response of the Government of Cyprus to the report of the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) on its visit to Cyprus from 2 to 9 February 2017 The Government of Cyprus has requested the publication of this response. The CPT’s report on the February 2017 visit to Cyprus is set out in document CPT/Inf (2018) 16. Strasbourg, 26 April 2018 Response by the Government of Cyprus to the report on the visit of the European Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment (CPT) to Cyprus (2 to 9 February 2017) The Republic of Cyprus welcomes the recommendations of the Committee for the Prevention of Torture and Inhuman or Degrading Treatment or Punishment. The competent authorities have carefully studied the recommendations, which will be duly considered in the efforts to improve the treatment of persons deprived of their liberty, with a view to strengthening, where necessary, the protection of such persons. Cyprus remains committed to its dialogue with the Committee for the prevention of torture and inhuman or degrading treatment or punishment. I. INTRODUCTION D. National Preventive Mechanism Recommendation par. 9, page 10 -11 The CPT recommends that the Cypriot authorities significantly increase the resources allocated to the Office of the Ombudsman to enable it to carry out its NPM functions effectively, along with a dedicated and sufficient budget. Enhancing the capacity of the Office of the Ombudsman has been one of the priorities of the Cypriot authorities, who have sought external expertise on how best to proceed.
    [Show full text]
  • U.S. Money Laundering Threat Assessment (MLTA)
    MONEY LAUNDERING THREAT ASSESSMENT WORKING GROUP Department of the Treasury Office of Terrorism and Financial Intelligence (TFI) • Office of Terrorist Financing & Financial Crime (TFFC) • Financial Crimes Enforcement Network (FinCEN) • Office of Intelligence and Analysis (OIA) • Office of Foreign Assets Control (OFAC) • Executive Office for Asset Forfeiture (TEOAF) Internal Revenue Service (IRS) • Criminal Investigation (CI) • Small Business/Self Employed Division (SB/SE) Department of Justice Federal Bureau of Investigation (FBI) Drug Enforcement Administration (DEA) Criminal Division • Asset Forfeiture Money Laundering Section (AFMLS) National Drug Intelligence Center (NDIC) Organized Crime Drug Enforcement Task Force (OCDETF) Department of Homeland Security Immigration and Customs Enforcement (ICE) Customs and Border Protection (CBP) Board of Governors of the Federal Reserve System United States Postal Service (USPS) United States Postal Inspection Service (USPIS) U. S. Money Laundering Threat Assessment December 2005 TABLE OF CONTENTS MONEY LAUNDERING THREAT ASSESSMENT Introduction ........................................................................................................................................i Banking ................................................................................................................................................ 1 Money Services Businesses ....................................................................................................... 7 Money Transmitters...........................................................................................................
    [Show full text]
  • Comments by Cyprus Police Academy to the Recommendations of the External Evaluation Committee (EEC) for Improvements, As Contained in Doc No
    Comments by Cyprus Police Academy to the recommendations of the External Evaluation Committee (EEC) for improvements, as contained in Doc No. 300.2.2 (Institutional Evaluation) p. 18 and Doc No. 300.1.1 (Program Evaluation) p. 17 The comments of the EEC regarding both Institutional and Programme evaluation were the same and are cited below: “Suggestions for improvement: i. Reconsider the role of research and the research centre in the overall academic strategy ii. Ensure that the Mission and Vision statements are more closely tied to outcomes; iii. Ensure better alignment of strategic planning and quality assurance objectives. iv. Consider upgrading facilities and outdoor recreation areas.” The EEC’s general comments on the above suggestions are as follows: i. The Scientific Research Centre, which was presented during the Evaluation, is now called the Centre for Scientific Research and Professional Development, and as of 17/01/2019 comes under the Assistant Chief of Police (Education), who implements/coordinates and oversees the educational policy set by the Chief of Police. It is underlined that the Research Office, which deals with the study of laws, changes in course material, preparation of research in police matters, etc., still operates under the Cyprus Police Academy (CPA). More details are available in the comments on points 6.1.1 - 6.1.7 of the Institutional Evaluation. ii. Moreover, the Police Academy has revised the learning outcomes of the Training of Police Recruits, with a view to aligning them with the strategic goals of the Police, quality assurance and time frames, as follows: «The CPA’s mission is the provision of quality education and training to all members of the Cyprus Police, with a view to expanding their knowledge and developing their skills and abilities, in order to ensure, in the best possible way, the achievement of the strategic goals of the Police».
    [Show full text]
  • 70+6'& 0#6+105
    70+6'& 0#6+105 ' 'EQPQOKE CPF 5QEKCN Distr. GENERAL %QWPEKN E/C.12/1998/SR.35/Add.1 23 November 1998 Original: ENGLISH COMMITTEE ON ECONOMIC, SOCIAL AND CULTURAL RIGHTS Nineteenth session SUMMARY RECORD OF THE SECOND PART (PUBLIC)* OF THE 35th MEETING Held at the Palais des Nations, Geneva, on Thursday, 19 November 1998, at 11 a.m. Chairperson: Mr. GRISSA CONTENTS CONSIDERATION OF REPORTS: (a) REPORTS SUBMITTED BY STATES PARTIES IN ACCORDANCE WITH ARTICLES 16 AND 17 OF THE COVENANT (continued) Third periodic report of Cyprus (continued) * The summary record of the first part (closed) of the meeting appears as document E/C.12/1998/SR.35. This record is subject to correction. Corrections should be submitted in one of the working languages. They should be set forth in a memorandum and also incorporated in a copy of the record. They should be sent within one week of the date of this document to the Official Records Editing Section, room E.4108, Palais des Nations, Geneva. Any corrections to the records of the public meetings of the Committee at this session will be consolidated in a single corrigendum, to be issued shortly after the end of the session. GE.98-19798 (E) E/C.12/1998/SR.35/Add.1 page 2 The public part of the meeting was called to order at 11 a.m. CONSIDERATION OF REPORTS: (a) REPORTS SUBMITTED BY STATES PARTIES IN ACCORDANCE WITH ARTICLES 16 AND 17 OF THE COVENANT (agenda item 6) (continued) Third periodic report of Cyprus (continued) (E/1994/104/Add.12; HRI/CORE/1/Add.28/Rev.1) 1.
    [Show full text]
  • Corruption Perceptions Index 2020
    CORRUPTION PERCEPTIONS INDEX 2020 Transparency International is a global movement with one vision: a world in which government, business, civil society and the daily lives of people are free of corruption. With more than 100 chapters worldwide and an international secretariat in Berlin, we are leading the fight against corruption to turn this vision into reality. #cpi2020 www.transparency.org/cpi Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of January 2021. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts. ISBN: 978-3-96076-157-0 2021 Transparency International. Except where otherwise noted, this work is licensed under CC BY-ND 4.0 DE. Quotation permitted. Please contact Transparency International – [email protected] – regarding derivatives requests. CORRUPTION PERCEPTIONS INDEX 2020 2-3 12-13 20-21 Map and results Americas Sub-Saharan Africa Peru Malawi 4-5 Honduras Zambia Executive summary Recommendations 14-15 22-23 Asia Pacific Western Europe and TABLE OF CONTENTS TABLE European Union 6-7 Vanuatu Myanmar Malta Global highlights Poland 8-10 16-17 Eastern Europe & 24 COVID-19 and Central Asia Methodology corruption Serbia Health expenditure Belarus Democratic backsliding 25 Endnotes 11 18-19 Middle East & North Regional highlights Africa Lebanon Morocco TRANSPARENCY INTERNATIONAL 180 COUNTRIES. 180 SCORES. HOW DOES YOUR COUNTRY MEASURE UP?
    [Show full text]
  • International Covenant on Civil and Political Rights
    United Nations CCPR/C/CYP/5 International Covenant on Distr.: General 26 November 2020 Civil and Political Rights Original: English English, French and Spanish only Human Rights Committee Fifth periodic report submitted by Cyprus under article 40 of the Covenant pursuant to the optional reporting procedure, due in 2020*, ** [Date received: 27 July 2020] * The present document is being issued without formal editing. ** The annexes to the present report are on file with the secretariat and are available for consultation. They may also be accessed from the web page of the Human Rights Committee. GE.20-16001(E) CCPR/C/CYP/5 Contents Page List of abbreviations ...................................................................................................................... 3 I. Introduction ................................................................................................................................... 5 II. Provisions of the Covenant ........................................................................................................... 5 Α. General information on the national human rights situation, including new measures and developments relating to the implementation of the Covenant ............................... 5 Β. Specific information on the implementation of articles 1–27 of the Covenant, including with regard to the previous recommendations of the Committee .................................. 6 Constitutional and legal framework within which the Covenant is implemented (art. 2) ..... 6 Non-discrimination,
    [Show full text]
  • 1 Factsheet: Money-Laundering* Money Laundering and Related Illicit
    Factsheet: Money-laundering* Money laundering and related illicit financial activities have devastating economic and social consequences. They continue to pose serious challenges to economies and governments. In addition to funding corrupt individuals and their networks, the illicit proceeds of money laundering have also been used to finance organized crime, conflicts and terrorist activities. The process of money laundering is critical to the effective operation of virtually every form of transnational and organized crime, including the production and trafficking in illicit drugs. To successfully combat money laundering, it is imperative that comprehensive and globally harmonized regulations be adopted and enforced. It has been shown that legal and operational obstacles inherent in many national frameworks further stretch the ability of some Member States to effectively implement anti money laundering legislation. In many cases, the proceeds of crime are raised in, or routed through countries which have weak or non- implemented legislation. The law enforcement abilities of Member States must be enhanced, and they must be able to effectively share information, improve the coordination within their national systems, and expand their cooperation on the regional and international stage. Achievements A majority of Member States already have some form of legislation criminalizing money laundering, and a significant portion of this legislation is reported as taking into consideration international requirements and standards, such as those established by the Financial Action Task Force. A significant portion of Members States has also carried out the following actions: Established legislation allowing the freezing, seizure and confiscation of the proceeds of illicit drug trafficking and other serious crimes; Incorporated measures into their financial systems to counter money- laundering; Established Financial Intelligence Units (FIU).
    [Show full text]
  • UAE Anti-Money Laundering Law
    UAE Anti-Money Laundering Law The following is a translation by Gulf News. The Council of Ministers of the United Arab Emirates has approved a law that makes the laundering of property derived from unlawful means a criminal offence. The following is the text of the law: Article (1) also defines ‘property’ as assets of every kind, whether corporeal or incorporeal, moveable or immovable, and legal documents or instruments evidencing title to those assets or any rights related thereto.’ The law to provides for the creation of a national anti money-laundering committee, under the chairmanship of the governor of the UAE Central bank. Article (2) states: ‘Where a person intentionally commits one of following acts in respect of property derived from any of the offences stated in Item 2 of this article, such person shall be considered a perpetrator of the money-laundering offence: a) The conversion or transference of proceeds, for the purpose of concealing or disguising the illicit origin of such proceeds. b) The concealment or disguise of the true nature, source, location, disposition movement, rights with respect to or ownership of proceeds. c) The acquisition, possession or use of such proceeds. 2. For the purposes of this law, property shall mean those derived from the following offenses: a) narcotics and psychotropic substances. b) Kidnapping, piracy and terrorism. c) Offences committed in violation of the environment law. d) Illicit dealing in fire arms and ammunition. e) Bribery, embezzlement, and damage to public property. f) Fraud, breach of. trust and related offences. g) Any other related offences stated in international conventions to which the state is party.
    [Show full text]