15 Jun 2018
Cypriot Central Bank will restrict shell companies to fight money laundering and terrorist financing. The CBD is looking into the issuance of the new set of definition in regards to what constitutes a shell company under its Direction for the Prevention of Money Laundering and Terrorist Financing.
15 June, AtoZ Markets – The central bank of Cyprus, (CBC) has reportedly announced that it is planning to incorporate the definition of the shell/letter box company during the upcoming revision of the Directive for the Prevention of Money Laundering and Terrorist Financing.
As per the number of online reports, the CBD is looking into the issuance of the new set of definitions in regards to what constitutes a shell company under its Direction for the Prevention of Money Laundering and Terrorist Financing. The changes are expected to affect the unregulated brokerages that are planning to set their business on the island. Reportedly, it will be harder for these entities to set up fake offices and bank accounts in Cyprus.
The decision of the Cyprus Central Bank emerges as a result of the “pressure” from the US, according to the reports. Reportedly, last month, the US counterterrorism treasury official, Marshall Billingslea has paid a visit to the island. It is known that the official intended to evaluate how the two countries can advance the joint anti-money laundering efforts.
The US has also stated that Cyprus is a ‘country of primary concern’ when it comes to the money laundering across the world. Back in 2015, a report from the US State Department has highlighted that Cyprus has been used as an intermediary by criminals planning to launder money.
According to one of the online reports, the term “shell company” refers to a non-publicly traded, liability company or any other business that fulfills any one of the following criteria:
In case Cypriot Central Bank will continue to put efforts into combating money laundering practices, the US might be less worried about the Cypriot financial sector.
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