Category: Newsletters

The Basel AML index is published annually since 2012 and it remains the only independent, research-based index by a non-profit organisation ranking countries according to their risk of money laundering and terrorist financing (ML/TF).

The Basel AML Index measures the risk of ML/TF in countries around the world. Risk is defined broadly as a country’s vulnerability to ML/TF and its capacities to counter it. It does not measure the actual amount of ML/TF activity in a country.

Risk scores are based on data from publicly available sources such as the Financial Action Task Force (FATF), Transparency International, the World Bank and the World Economic Forum. They cover 16 indicators in five domains relevant to assessing ML/TF risk at the country level:

• Quality of AML / CFT Framework
• Bribery and Corruption
• Financial Transparency and Standards
• Public Transparency and Accountability
• Legal and Political Risks

The Basel AML Index ranks countries based on their overall scores, capturing the complex global nature of ML/TF risks and providing useful data for comparative purposes. However, the primary objective is not to rank countries superficially in comparison with each other, but to provide an overall picture of different countries’ and regions’ risk levels and their progress in addressing vulnerabilities over time.

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Culture is arguably the most beneficial asset a business can have: it can impact on performance, reputation, profit and growth in equal measure.

So much has been written about culture in recent years that we are in a position now where most businesses and business leaders understand its value. Compliance culture is a really important element that can impact on the wider cultural challenges that a firm could face. Your long-term success as a company strongly relates to how well you’ve managed to define your ethics and compliance, both inside and outside the organizational structure. A mistake made by many businesses – small or large – is to leave this in the realm of the abstract

In a business environment where reputational threats lurk around every corner, a strong culture of ethics and compliance is the foundation of a robust risk management program. The lessons learned related to scandals and organizational crises that trace back to the early 2000s make one thing clear: without an ethical and compliant culture, organizations will always be at risk. More and more, culture is moving from a lofty concept to something that should be defined, measured, and improved.

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The Cyprus House of Representatives on the 18^th February 2021 has enacted the long-awaited amending law to the Prevention and Suppression of Money laundering and Terrorist Financing Law 188(I)/2007 thus fully implementing EU Directive 2018/843 of the European Parliament and of the Council of 30 May 2018, (“the 5th AML Directive”).

This new enactment, (“the new Law”), implements the provisions of the 5th AML Directive that were not already implemented so far into Cyprus Law. With this new Law, the 5th AML Directive is now fully implemented in Cyprus.

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