Audit office report identifies inefficiencies in banking sector AML supervision

On March 31, 2026, the Audit Office of Cyprus released a report evaluating the effectiveness of the Central Bank of Cyprus (CBC) and MOKAS in combating money laundering for the period 2020–2024. Auditor General Andreas Papaconstantinou noted that while the CBC possesses a clear legal framework and sufficient supervisory powers, structural weaknesses hinder the full implementation of risk-based strategies. The audit highlighted resource limitations, organizational inefficiencies, and significant delays in the sanctioning process. Furthermore, the lack of an independent quality assurance system for audits was identified as a major gap. The report also pointed out that the National Risk Assessment has not been updated since 2017. Regarding MOKAS, despite technological and personnel upgrades, the unit struggles with a high volume of suspicious transaction reports, of which only 5.5% are forwarded for further investigation. Finally, the quality of data provided by credit institutions and persistent analytical delays were cited as factors limiting overall system effectiveness.