Cypriot bank officials to present AML progress in U.S.

Top officials from four major Cypriot banks are headed to the U.S. on Sept. 16 to present updates on their progress in anti-money laundering (AML) efforts, sanctions enforcement, and foreign account management. According to a report by Panayiotis Rougalas in this Sunday's Kathimerini, the delegation, representing Bank of Cyprus, Hellenic Bank, Eurobank Cyprus, and Astrobank, will hold meetings in Washington, D.C., and New York.

The trip, an annual "roadshow" for the Cypriot banking sector, aims to assure American partners that Cyprus has overhauled its banking practices since the financial crisis in 2013. This outreach has been held regularly since 2017 to demonstrate the banks' compliance with international financial regulations.

Throughout the week, the Cypriot representatives will meet with U.S. government officials, including members of Congress and executives from the State Department, the Treasury, and the Department of Justice. Discussions will also include representatives from the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), agencies involved in overseeing financial crimes.

Significant progress has been made in the past few years, particularly with the banks' relationships with U.S. correspondent banks for dollar transactions, expanding from one to five partnerships. One key meeting will be held with Citibank.

"Since 2013, the way banks operate in Cyprus has changed significantly," said Marios Skandalis, head of regulatory compliance at Bank of Cyprus. Skandalis, who will attend the meetings, noted that the trip offers a vital opportunity to exchange information with U.S. partners and demonstrate how Cypriot banks have adapted to new regulations.

In the past five years, Cypriot banks have closed 42,728 business relationships with shell companies and shut down 125,872 associated accounts as part of a larger push for regulatory compliance, according to the Central Bank of Cyprus.

The banks have been credited with improving Cyprus’ AML image, as highlighted in the Council of Europe’s 2023 Moneyval report. Cyprus received favorable ratings for 37 of 40 recommendations, with its next evaluation scheduled for May 2025.

However, despite these advances, Cyprus has been periodically linked to financial scandals in international media, such as the *FinCEN Files* and *Cyprus Papers*. Nonetheless, the country's banks are showing commitment to remaining on the right side of financial history.