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The Church puts its money where its mouth is
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www.cyprus-mail.com
April 28, 2013
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TALES FROM THE COFFEESHOP: THE MORE THINGS CHANGE... INSIDE Cyprus DISY ballot marred by Paralimni shenanigans 3
World US in no rush to intervene in Syria 9
Lifestyle Is a cure for ageing really on the horizon? centre
Property Investing in property is still worthwhile 24
Sport APOEL forced to postpone title celebration back
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‘Dirty money’ just an excuse Leading German expert says all EU27 states are failing to comply with bloc’s directive on money laundering By Stefanos Evripidou
T
HE EUROPEAN Union, led by Germany, has made Cyprus pay dearly for its alleged money laundering transgressions but one leading anti-money laundering expert questions how the EU will ever repay Cyprus if those charges are proved wrong. Andreas Frank is an independent adviser to the German Bundestag and Council of Europe, who has already initiated two infringement proceedings against Germany for violations of the EU’s antimoney laundering (AML) directive. A German national living in Switzerland, he argues that mostly German allegations of money laundering in Cyprus were used to justify the unprecedented Eurogroup decision to force a ‘bail-in’ of depositors in Cypriot banks, the argument being that German taxpayers’ money should not be used to save ‘dirty’ Russian money deposited on the island. However, this premise could fall flat on its face if the recently submitted reports by the Council of Europe’s Moneyval and private auditor Deloitte Financial Advisory show Cyprus to be no more or less guilty of AML violations than other EU member states. In fact, according to Frank, all 27 member states are failing to comply with the EU’s third
AML directive from 2005. The European Commission, meanwhile, is currently working on a fourth. Each new directive repeals and replaces the older one, meaning that when the fourth anti-money laundering directive is passed, the previous three will no longer be applicable. Speaking to the Sunday Mail, Frank said the reason was that none of the member states were complying with the directives. He highlighted the difference between adopting the directive’s measures “on paper” and actually ensuring “effective implementation”. Rather than accusing member states of AML violations and taking all 27 to the European Court of Justice, as the Commission is obliged to do, it simply wipes the slate clean every few years and starts fresh with a new directive, giving member states more time to comply, he argued. The EU’s AML directives are based on the 40+9 recommendations made by the Financial Action Task Force (FATF), an inter-governmental body established in1989 to set standards and promote effective implementation of AML and counter-terrorism financing (CTF) measures. According to the previous Moneyval review of Cyprus in September 2011, the country was found to be compliant to
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EYESORE FOR SALE?
The Limassol district office has called a halt to work on a multi-million-euro mansion being built in a prime location in Pissouri, which local residents say is an eyesore. The property has been listed for sale on a website but a representative for the Russian owner would not confirm or deny the move SEE STORY PAGE 2