Central Bank of Cyprus fines Banque SBA Cyprus €750,000 — Cyprus Mail

The Central Bank of Cyprus has imposed an administrative fine of €750,000 on Banque SBA Cyprus for non-compliance with anti-money laundering and counter-terrorist financing requirements, which the regulator identified during an inspection of the bank in 2023. As Cyprus Mail reports, the decision was made on September 29.

Regulator’s decision

The sanction was imposed within the supervisory powers of the Central Bank of Cyprus provided for by the country’s legislation on the prevention and suppression of money laundering activities.

According to the regulator, the 2023 inspection found that Banque SBA Cyprus had failed to comply with certain provisions of the relevant law and the Central Bank directive for credit institutions on combating money laundering and terrorist financing.

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Legislative provisions

The central bank referred to Part 6 of Article 59 of the 2007 Law on the Prevention and Suppression of Money Laundering Activities, as amended. This provision permits measures to be taken against supervised institutions that fail to meet the requirements of Part VIII of the law or related directives of the regulator.

According to the Central Bank, decisions on administrative measures are made in accordance with administrative law procedures and principles. In particular, the institution affected by the decision must be given an opportunity to provide explanations before it is finalized.

The non-compliance concerned provisions of the law and the fifth edition of the Central Bank directive for credit institutions, issued in February 2019. The Central Bank of Cyprus monitors compliance with anti-money laundering legislation in the financial activities of institutions under its supervision, including credit institutions.