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Cyprus: Double Tax Treaties

Convention on Money Laundering

On 27 March 2009, Cyprus ratified the Council of Europe Convention on Money Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (CETS No. 198). The convention opened for signature to the member states of the Council of Europe, the non-member states which have participated in its elaboration, and the European Community, in Warsaw, on 16 May 2005. It entered into force on 1st May 2008.

This latest convention replaced the Council of Europe’s 1990 convention, providing legislation to take into account the fact that not only could terrorism be financed through money laundering from criminal activity, but also through legitimate activities.

The new convention was the first international treaty covering both the prevention and the control of money laundering and the financing of terrorism. The text addresses the fact that quick access to financial information or information on assets held by criminal organisations, including terrorist groups, is the key to combating them. The convention includes a mechanism to ensure the proper implementation of its provisions by participants.

In 1998, the First Mutual Evaluation Report of the Council of Europe described Cyprus’s actions against money laundering to be "significantly in advance of any other country in its geographic sub-region."

In May 2015, the EU launched its Fourth Anti-Money Laundering Directive, which member states were expected to fulfil by 26 June 2017. The main development was further counter-terrorism measures, including the imposition of a National Central Register for each member state.

 

 

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