Strong AML Compliance Culture

Creating a Strong AML Compliance Culture

March 20, 2020

In its efforts to remain in full compliance with the European framework for tackling money laundering and terrorist financing, the Republic of Cyprus is constantly implementing changes to its local laws, in order to ensure alignment with EU Directives and Regulations.

One of the fundamental pillars of the Cypriot economy is the financial services and international business sector, which consistently follows a set of rigorous compliance requirements. This has led to generally positive ratings by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval).

Cyprus has been rated 5 times by Moneyval and is one of 25 countries assessed that has not recorded low evaluation grades in any of the 11 pillars of the effectiveness assessment, receiving substantially effective and moderately effective ratings across the board.

In a follow up to our recent article on the importance of bringing AML talent on board, we now take a look at best practices for fostering a culture of AML Compliance within your organization. This entails that every stakeholder and entity adheres to a set of obligations and duties, and also undergoes a series of annual training requirements.

It is important to note that business priorities and profit-making activities should not take precedence over this culture of AML compliance.

What are the elements of a strong compliance environment?

The basic elements for establishing a strong compliance environment within an organization are as follows:

  • Implementing a system of internal policies, controls, and procedures based on a risk-based approach
  • Designating a Compliance Officer who will oversee the compliance function on a daily basis
  • Designing an ongoing employee training program
  • Assigning an independent audit function to monitor and evaluate the effectiveness of the aforementioned policies and procedures on an ongoing basis.

How can CX Financia help you?

CX Financia offers guidance for the creation of a strong AML compliance culture within an organization, as well as a wide range of support services and training that will help your organization design and execute an effective approach to AML.

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For further insights on addressing modern challenges in today’s regulatory climate, as well as information on our package training solutions, contact us today.

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