Filenews 5 May 2023
The number of law firms audited by the Cyprus Bar Association in relation to the investment program amounted to 26, of which 16 were deemed to have existed and penalties were imposed. For ten law firms no case was proven.
This is what the Cyprus Bar Association says on the occasion of the visit to Cyprus of the Commissioner for Justice, and stresses that its purpose is to continue to respond successfully to the important role it is called upon to fulfil as a supervisory authority.
Specifically, the association states that regarding the Cyprus Investment Program, from October 2020 until today, supervisory audits have been carried out in 26 offices. Of these audits, four offices have been served with an indictment, five have been served with a guilty verdict, three have been served with a sentencing decision, two have been prepared and are being studied by the supervision and compliance department for possible presentation at the next board meeting and two are pending a criminal case
For 10 offices, cases have been completed and no offences have been detected. It is noted that the highest fine imposed was €79,000 for a series of charges related to non-compliance with anti-money laundering legislation, etc. This office had submitted 2013 naturalization applications from 2020 to 161.
Also, according to the Cyprus Bar Association, from September 2022 until April 30, 2023, scheduled on-site inspections have been carried out on 201 supervised, scheduled on-site inspections to combat money laundering and terrorist financing.
At the same time, the GPP stresses that as a supervisory authority, during the mandate of the current Board of Directors, since October 2020, it has placed great importance on supervisory controls and has taken actions that strengthen the exercise of supervision, as it derives from anti-money laundering legislation.
At the same time, it states that since March 2022, the Board of Directors of the GPP has taken all necessary measures in relation to the EU sanctions imposed on Russia and proceeded immediately to adequately inform and guide the supervised parties, applying strict standards.
In order to exercise supervision effectively, the GPP has proceeded with the modernisation of the supervisory control framework following the data set out in the relevant Moneyval report. In addition, it proceeded to the purchase of specialized services on specific issues from approved experts in Cyprus, for the enrichment of specialized know-how even during the on-site inspection.
In this context, it has additionally proceeded with the creation and implementation of special modern software adapted to the obligations of the association as a supervisory authority, for the technological and digital collection and evaluation of information and the risk classification of supervised entities with high data processing capabilities. In addition, it has entered into a partnership with the global organization providing risk management training and certification in relation to applicable sanctions, which provides lawyers with comprehensive and targeted training on sanctions. Finally, the GPP emphasizes that it is the only body in Cyprus that in the last three years has heard a large number of cases related to money laundering and the investment program of Cyprus, and based on the legislation has proceeded to convictions and imposition of financial penalties.
