As part of the efforts exerted by Cyprus to reinforce the fight against the use of the financial sector for money laundering and terrorist financing and in line with the international standards set by the Financial Action Task Force (FATF) but also the relevant European directives and especially the recent 4th Directive of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, the Central Bank of Cyprus, in collaboration and coordination with the other regulatory authorities have decided to conduct an assessment of the related risks on a national level, with the assistance of the World Bank. This exercise, on the basis of the internationally accepted and recognised methodology of the World Bank, will allow for the identification of any deficiencies in the regulatory framework currently in place for combating money laundering and terrorist financing, but also in the effectiveness of the procedures followed by all stakeholders involved in this effort, aiming at taking corrective action. This will contribute significantly towards the reinstatement of Cyprus as a reputable international financial centre and will facilitate substantially the various assessments of our country that are carried out from time to time.
The National Risk Assessment is expected to be completed by the end of 2016, resulting in a report with concrete recommendations that will be submitted to the Government, the Cypriot regulatory authorities and the private sector for implementation.