Filenews 31 May 2025 - by Charalambos Zakos
Recent anti-money laundering rules have resulted in stronger and more effective controls by banking institutions.
Neither newlyweds nor children seem to be exempt from these checks, as banks have long been asking for evidence of depositing money from marriages and baptisms under the new rules, especially when it comes to large sums.
On the occasion of the discussion that began after complaints about "thorough" checks expressed by newlyweds and new parents who wanted to deposit the "gift" of marriage or baptism in bank accounts, "F" contacted banking sources in order to be informed about the way financial institutions handle such cases.
As it has been conveyed to us, the deposit of significant sums derived from marriages or baptisms must be accompanied by evidence, such as the invitation, since it is considered necessary to have an initial explanation of the origin of the money.
The procedure, as it was emphasized, differs on a case-by-case basis, since the amount of the amount, the time of deposit, and the credit status of the persons are basic parameters for the evaluation.
A key point is that banks give a small time window for depositing the amount. As they explain, if a couple attempts to deposit the wedding money several months later, this may raise suspicions and if adequate explanations are not given, the bank may not accept the deposit.
Now, in case the couple wants to deposit an additional amount as "income" from the marriage, this should be done within a few days of the initial deposit. Otherwise, the interested parties must again justify the origin of the money.
New directive from the Central Bank
In another development, related to the new control regulations, the Central Bank of Cyprus, with a new directive issued at the beginning of May and will come into force on 2 June, seeks to simplify procedures and facilitate citizens and businesses, despite the strengthened compliance framework now in force in the banking system.
According to the relevant announcement, the new Directive provides that banks and other obliged entities must implement such policies in order to avoid the unjustified deprivation or delay of legal access to financial services, at least of those citizens who themselves assess that their activities have a low probability of involvement in money laundering.
For example, banks can categorize retired fellow citizens, who have no income beyond pension, in the category of low risk.
In that regard, the data required of them must be proportionate to that low risk.
More specifically, among other things, the Directive, always on the basis of the estimated risk for each customer:
1) allows the updating of business relationships with a frequency commensurate with the risk of each client and does not specify a minimum frequency of updating of business relationships for customers with a low probability of involvement in money laundering;
2) when updating, it allows the use of copies of IDs (instead of the original), making the process faster and easier;
3) allows the use of information acquired during the business relationship, which entails a reduction in the information required by citizens when updating their data;
4) makes it possible to use alternative evidence for our fellow citizens who are unable to respond due to health issues or physical disability, such as showing sensitivity to our fellow citizens who face such problems, is necessary;
5) allows for flexibility in terms of evidence in relation to the home address, such as certification to be carried out through the use of government documents or electronic utility bills;
6) allows the certification of documents by third parties (e.g. government agencies) as well as the use of electronic documents so that the expansion of certification options achieves better customer service.
In conclusion, the Central Bank of Cyprus emphasizes that despite the effort to simplify the procedures, this does not translate into a relaxation of the regulatory framework. On the contrary, as he adds, the strict requirements of our country's regulatory framework are maintained.
