The Central Bank of Cyprus (CBC) imposed a €750,000 fine on Banque SBA Cyprus over failures to comply with anti-money laundering and counter-terrorist financing requirements identified during an inspection carried out in 2023.

The decision was taken on September 29, as part of the CBC’s supervisory responsibilities under Cyprus’ legislation on the prevention and suppression of money laundering activities.

According to the Central Bank, the fine followed findings from its 2023 inspection concerning the bank’s failure to comply with specific provisions of the relevant law and the CBC’s directive to credit institutions on the prevention of money laundering and terrorist financing.

The CBC said that under section 59(6) of the Prevention and Suppression of Money Laundering Activities Law of 2007, as subsequently amended, it may impose measures where a supervised entity fails to comply with Part VIII of the legislation or related Central Bank directives.

It added that such decisions are taken in accordance with administrative law procedures and principles, including giving the affected entity an opportunity to provide explanations before a final decision is reached.

Following the findings of the 2023 inspection, the CBC therefore decided to impose the €750,000 administrative fine on Banque SBA Cyprus.

The failures related specifically to provisions of the law and the fifth edition of the CBC directive to credit institutions on the prevention of money laundering and terrorist financing, issued in February 2019.

The Central Bank is the competent authority responsible for enforcing Cyprus’ anti-money laundering legislation in relation to financial activities carried out by institutions under its supervision, including credit institutions.