by Andria PapageorgiouStrengthening Compliance: Safeguarding against Money Laundering Risks
A. Introduction:
In an increasingly interconnected and digital world, the fight against financial crimes, including money laundering, has taken center stage. As illicit activities continue to evolve and become more sophisticated, it is crucial for businesses to prioritize Anti-Money Laundering (AML) compliance. This article sheds light on the importance of AML measures, the risks associated with non-compliance, and how our law firm is dedicated to upholding AML standards while offering consulting services to organizations seeking to strengthen their AML frameworks.
B. The Significance of AML Compliance:
Anti-Money Laundering compliance refers to the comprehensive set of regulations, policies, and procedures designed to prevent the facilitation of money laundering and terrorist financing activities. Money laundering not only undermines the integrity of the global financial system but also aids criminal enterprises in disguising their illicit gains as legitimate funds. By complying with AML regulations, businesses not only protect their reputation but also contribute to maintaining the integrity of the financial system.
C. Risks of Non-Compliance:
The consequences of non-compliance with AML regulations are severe, ranging from reputational damage to financial penalties and legal consequences. Financial institutions and businesses failing to implement adequate AML controls can face substantial fines, regulatory sanctions, and potential loss of licenses (if applicable). Additionally, non-compliance may lead to damaged customer trust and adverse publicity, which can have long-lasting impacts on an organization’s bottom line.
D. Our Commitment to AML Compliance:
At Andria Papageorgiou Law Firm, we recognize the critical importance of AML compliance and the challenges businesses face in meeting regulatory obligations. With a team of experienced legal professionals specializing in AML, we are dedicated to assisting organizations in navigating the complex AML landscape, tailoring our services to their unique needs.
Our law firm offers comprehensive AML consulting services, helping clients establish robust AML frameworks and compliance programs. We collaborate closely with businesses across various sectors, providing guidance on risk assessment, policies and procedures development, staff training, and ongoing monitoring. By leveraging our expertise, organizations can ensure compliance with AML regulations, minimize risks, and safeguard their operations and reputation.
Recognizing that each business has unique AML requirements, our consulting services are tailored to meet specific needs. We work closely with clients to understand their operations, risk profile, and regulatory environment. We then develop customized solutions that address their specific challenges, ensuring an effective and efficient AML compliance program.
We understand that AML regulations are constantly evolving to keep pace with emerging risks. We remain up-to-date with the latest regulatory developments and industry best practices, ensuring our clients stay ahead of the curve. We proactively monitor changes in AML laws, guidelines, and enforcement actions, incorporating relevant updates into our consulting services to help clients maintain their AML compliance posture.
Further to all the above, we are also proud to announce that our esteemed Founder and Lawyer, Mrs. Andria Papageorgiou, has achieved an exceptional milestone in her professional career. Mrs. Papageorgiou has recently completed the prestigious International Compliance Association (ICA) Certification in Anti-Money Laundering (AML) for Institute of Certified Public Accountants of Cyprus and Cyprus Bar Association (CBA) Members, successfully passing the exam with Distinction. This accomplishment highlights her expertise and dedication to upholding the highest standards in AML compliance. The ICA Certification in AML is an internationally recognized qualification offered by the International Compliance Association (ICA). This certification equips professionals with the in-depth knowledge and skills necessary to combat the ever-evolving challenges posed by money laundering and terrorist financing activities.
E. Conclusion:
The fight against money laundering requires a proactive and comprehensive approach to ensure the integrity of the global financial system. By prioritizing AML compliance, businesses can mitigate risks, Andria Papageorgiou Law Firm, we are committed to helping organizations navigate the complex world of AML regulations through our tailored consulting services.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
by Andria PapageorgiouEU List of third country non-cooperative jurisdictions for tax purposes and possible implications
In last February the ECOFIN Council updated the EU list of third country non-cooperative jurisdictions for tax purposes (the so-called EU ‘blacklist’) and the list became official upon publication in the Official Journal on 26 February 2021.
The EU list of non-cooperative jurisdictions for tax purposes is a tool to tackle:
- tax fraud or evasion: illegal non-payment or under payment of tax
- tax avoidance: use of legal means to minimise tax liability
- money laundering: concealment of origins of illegally obtained money
The updated EU ‘blacklist’ includes the following jurisdictions:
- American Samoa
- Anguilla
- Dominica
- Fiji
- Guam
- Palau
- Panama
- Samoa
- Seychelles
- Trinidad and Tobago
- US Virgin Islands
- Vanuatu
The EU has previously decided that, as from 2020, the list will be updated twice a year.
Various defensive measures are currently being enacted by EU Member States which should negatively affect entities resident in jurisdictions on the EU ‘blacklist‘. These defensive measures include increased withholding taxes (WHT), stricter CFC rules, denial of deductibility of expenses, denial of participation exemption, increased monitoring and audits, special documentation requirements etc.
From a Cyprus tax angle, it is noted that the Cypriot Ministry of Finance recently submitted to Parliament a draft bill (currently having an effective date as from 1 July 2021) which introduces WHT for certain payments to companies in the EU ‘blacklist’ jurisdictions, as follows:
- For payments of dividends, WHT at the rate of 17%;
- For payments of passive interest, WHT at the rate of 30%; and
- For payments of royalties, WHT at the rate of 10%.
Finally, increased DAC6 reporting obligations may apply to certain related party transactions between companies in the EU and the EU ‘blacklisted’ jurisdictions, as the relevant Hallmark can be met irrespective if the Main Benefit Test is also satisfied.
Should you have any further questions, please do not hesitate to contact us at [email protected].
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.