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 and, thus, the CBC provides inter-alia the person concerned with the opportunity to be heard before taking a final decision.
Therefore the CBC, by a decision dated 13 July 2016, decided to impose sanctions in the form of a fine on Hellenic Bank Public Company Ltd (Hellenic Bank) amounting to €1.145.000 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 before 20 July 2016 this will be reduced by 15% or €171.750.
The omissions and/or weaknesses identified arise from the findings of the on-site examination conducted in September 2014, covering Hellenic Bank’s activities in the preceding years, and relate primarily to the implementation of due diligence measures and customer identification procedures, including the construction of detailed customer business profiles and monitoring of transactions. The imposition of the fine does not constitute identification of incidents of suppression of proceeds from illegal activities.