Deloitte: Many suspicious transactions Cypriot banks

22 May 2013 Consultancy.uk

Cypriot banks often have too little knowledge of their customers to be able to combat money laundering. This emerges from a study of the European Union in cooperation with accounting and consultancy Deloitte. The researchers examined the practice in the six largest banks in Cyprus. It showed that banks often lack the effort to get enough information about their customers and that they don't seem to realize the risks that surround their customers.

deloitte cyprus

Suspicious transactions

Cypriot banks supposedly only conducted four studies between 2008 and 2012 into possible cases of money laundering. At that time some ''suspicious'' transactions were reported to the authorities. Deloitte distinguished already 29 such transactions in the past year.

Evidence deleted

From a recent analysis by consulting firm Alvarez & Marsal it was revealed that Cypriot bankers may be contributing to such money laundering. Two former executives of the Bank of Cyprus would have erased evidence of fraud.

In recent years, Cypriot bankers have often been accused of fraud. Early this year, various media, including the BBC, reported that data at various banks and financial institutions in Cyprus from the period 2007-2010 was lost.

Laundering in India

Money laundering does not only happen in Cyprus. India recently ran an investigation into a major money laundering case in private banks. Again consulting firm Deloitte conducted research into the extent of the problem.

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