The Central Bank of Cyprus (CBC), within the remit of exercising its supervisory role, may take, under subsection (6) of section 59 of the Prevention and Suppression of Money Laundering Activities Laws of 2007 to 2016, all or any of the measures listed therein in the event of non-compliance by a supervised person with the legal and regulatory framework for preventing and combating money laundering. The decision is based on the procedures and principles of administrative law, therefore the CBC, inter-alia, provides the person concerned the opportunity to be heard before taking a final decision.
In this respect, the CBC, by a decision dated 21 November 2016, has decided to impose sanctions in the form of a fine on Jordan Kuwait Bank (Cyprus branch) amounting to €1.205.000 for failure to comply with certain provisions of the Prevention and Suppression of Money Laundering Activities Laws of 2007 to 2016 and of the Directive issued by the CBC for the Prevention of Money Laundering and Terrorist Financing, December 2013 (Fourth Edition). If the fine is paid within a specified time limit, it will be reduced by 15% or €180.750.
The imposition of the fine arises from the findings of an on-site examination at Jordan Kuwait Bank (Cyprus branch) conducted in January 2015.