Cyprus-Forum.com

[Paphitis]

Yes I agree 100% Tim.

The whole manner in which Cyprus was treated by the EU was deplorable, and the people will never forget this.

[supporttheunderdog]

Yes sure, money laundering maybe less prevalent in Cyprus. Fine!

But our Bank were still stupid enough to over expose themselves to junk Greek Bonds and lost a lot of money!

Yes, but the 'money laundering' pretext was used to justify the hard treatment that Cyprus was then given.

Merkel and Schäuble even came out several times with the pronouncement that, "everyone who has a Cyprus bank account is responsible, and it is right that they contribute towards the rescue," which I find to be totally bizarre. I am a self-employed resident of Cyprus and I do not see how it is possible for me not to have a Cyprus bank account. I was never consulted by my bank (Bank of Cyprus) as to whether they should expose themselves so much to Greece, for heaven's sake!

This discourse must be challenged and rebutted.

An item which stumbled across in a German paper about Money Laundering in Cyprus

Europe's debt crisis
The phenomenon of money laundering in Cyprus
24.05.2013 · Only an examination by the private firm Deloitte has revealed that it comes to money laundering in Cyprus is much worse than previously claimed. The actual customers about the banks were mostly unknown.
http://www.faz.net/aktuell/wirtschaft/europas-schuldenkrise/zypern/europas-schuldenkrise-das-phaenomen-der-geldwaesche-in-zypern-12192561.html
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"I will not say that it the phenomenon of money laundering has not actually been to a certain extent. But (...) Cyprus was still under control of the regulatory authorities and received for his fight against money laundering comparatively good grades, "said Cyprus Foreign Minister Ioannis Kasoulidis in March in an interview with the Frankfurter Allgemeine Zeitung He reiterated the line of his government, which it always pointed, Cyprus legislation to combat money laundering among the strictest in Europe.

Once, however, resulted from the troika (EU, ECB and IMF) commissioned audits that Cyprus has "systemic weaknesses" in the fight against money laundering, is the new Cypriot line, in other European countries there is a much larger discrepancy between laws to combat of money laundering and its application. Cyprus Finance Minister Georgiadis but promised that his government would take measures to remedy the deficiencies identified in an action plan and close potential "loopholes". The action plan to combat money laundering drawn up in consultation with the Troika.

The audit reports were put in excerpts Cypriot and foreign media. Carried out the tests had the body responsible for monitoring the fight against money laundering and terrorist financing body of Europe MONEYVAL, as well as the auditing firm Deloitte. The office of MONEYVAL is headed by a chairman from Malta, Liechtenstein and his representative members from Romania, Poland and San Marino, Deloitte is a global, private company.

Only under pressure deflects a Cyprus
While the previous Cypriot government did not object to an audit by MONEYVAL, she fought vigorously against an audit by Deloitte and was only under intense pressure after. MONEYVAL had checked the fight against money laundering in Cyprus several times and was in September 2011 comes to a positive with restrictions Result: Overall, the financial sector of the island nation seem to be "adequately controlled" summed MONEYVAL and praised, Cyprus has taken "comprehensive measures", to correct the misconception that Cypriot banks often do not know their customers.

The results of 2013 showed, however, why Nicosia had been reluctant to grant even the professionals of Deloitte insight into the books of Cypriot banks. Between 2008 and 2010, the banks of the island state reported thus not a single suspicious transaction, a 2011, 2012 "some". The auditors of Deloitte met on the other hand, 29 "suspicious" transactions in just the past twelve months. They noted that the financial institutions did not know in more than 90 percent of the nearly 400 cases examined by large investors, who are their customers.

The real beneficiaries had hidden behind a network of front companies and interim accounts over which the banks had no overview. Therefore, banks would often not know which shops of the assets of unfamiliar customers came from, where it came from and where it was transferred. Although Cyprus legislation against money laundering is good, but not their enforcement, was quoted in the report.

Euro group chief Dijsselbloem had then said, mutatis mutandis, that it must be done to ensure that the Cypriot legislation does not exist only on paper. This applies particularly to the support that the banks need to know who their customers are. Bankers in Nicosia represented internally the view Dijsselbloem have held back with clearer criticism to politics not to jeopardize the disbursement of the first tranche of the aid package agreed for Cyprus in the amount of 10 billion euros. The Euro Group has approved the transfer of initially EUR 3 billion mid-May.

blame google for any translation errors