Cyprus: Amendment Of The Directive To Credit Institutions For The Prevention Of Money Laundering And Terrorist Financing
What you have to know?
- Provide your Credit Institution with audited Financial Statements and/or Management accounts.
- The above requirement is applicable to all natural persons, companies and legal entities, including those established in foreign jurisdictions. In the case where there is no obligation to prepare audited financial statements in the respective jurisdiction, recent management accounts should be provided.
- Provide your Credit institution with all the relevant information/data regarding the company.
- Maintaining a business relationship requires that the credit institution should obtain data and information when updating their business profile during the operation of an account directly from the natural person or, in the case of legal entities, the ultimate beneficial owners who exercise control over the legal entity.
- Arrange a face-to-face meeting with your Financial Institution
- For business relationships that were initiated following an introduction by a third party, credit institutions are obliged to arrange a face-to-face meeting with their customers to verify both data and information provided by the third party.Face-to-face meetings should be arranged in a reasonable time period and not later than three months from the account opening date.
Meetings may also be held over the internet provided adequate safeguards such as sound/video recording are in place.
In case the meeting cannot take place, credit institutions cannot execute any new transactions and are obliged to terminate the business relationship. In the case where the customer refuses a meeting, a credit institution will assess whether they should report the company to MOKAS.
Any person other than the ultimate beneficial owner attending the meetings shall not be considered to be in compliance by the credit institution.
All the above concerning face-to face and other meetings is also applicable to existing customers.