Issue 59 by INBusiness

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Expertise Solutions Value

Gold ISSUE 59 FEBRuary 21, 2016 PRICE €3.00

Gold ISSUE 59 | february 21,

t h e

b u s i n e s s

ACCOUNTANCY ICPAC at 55 Kyriakos Iordanou on the challenges

m a g a z i n e

INNOVATION Investing in the Future with the MIC Cyprus

o f

c y p r u s

PEOPLE

Andrea Antoniou Michalis Papadopoulos Anastasia Papadopoulou

WHAT’S ON Art, Dance, Music, Opera, & More

2016 | ensuring compliance

presents

ENSURING

COMPLIANCE What it means, why it’s needed Elias Neocleous

Michalis Loizou

We support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

COMPLIANCE OFFICER, A. Neocleous Trust Company Ltd

Andrew Demetriou

Director, Ioannides Demetriou LLC

Michael M. Antoniades

Marios Skandalis

Director, Compliance Division, Bank of Cyprus

Board Member, KPMG

Eleftherios Philippou

Risk & reputation leader, Deloitte Ltd

Pantelis Christofides

Partner, Head, Corporate and Commercial Department, Andreas Neocleous & Co. LLC

Partner, L. Papaphilippou & Co LLC

Andreas Theodosiou director, AMF Global

Eleana Spyris

LEGAL ADVISOR/ COMPLIANCE OFFICER, EuroLife Ltd

Andreas Andreou Vice-Chairman, Cyprus Securities and Exchange Commission

Gabriel Onisiforou Board Member, EY Cyprus

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ForexTime (FXTM) is an international online forex broker offering financial services in forex, spot metals and CFDs. ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 185/12. There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose. It is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. It is the responsibility of the Client to ensure that the Client can accept the Services and/or enter into the Transactions in the country in which the Client is resident. If the risks involved seem unclear to you, please seek independent advice. 34 | GOLD | The Business Magazine of Cyprus @2016 FXTM

ISSUE 59 FEBRUARY 21, 2016

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

CONTENTS 8 | BUSINESS BRIEFING

Economic & Business Highlights of the past month.

COVER

STORY

30 | Ensuring Compliance

Leading compliance professionals from a variety of industries explain how they ensure that they and their clients comply with today’s complex regulatory requirements.

14 | MY WAY

Evangelia Eliadou’s management style.

12 | FIVE MINUTES WITH… Andrea Antoniou

13 | THEY SAID WHAT?

A selection of memorable quotes from Cypriots in the public eye.

OPINION 76 | Lessons from Greece

By Dr. George Theocharides

FEATURES 14 | IN Business Awards 2015

Four pages of photos from the event.

SPECIAL PROMOTIONAL FEATURE 1 47 |

Compliance

Thirteen leading firms outline what compliance means to them and how they ensure that it plays a key role in their culture and operations.

18 | Investing in the Future

The Microsoft Innovation Center in Nicosia.

22 | ICPAC at 55

Interview with General Manager Kyriakos Iordanou

66 | Command the Horizon

ONE: The tallest seafront residential tower in the Mediterranean.

70 | Preserving Capital

Interview with Rashid Mohamed, Investment Specialist Global Credit, BNP Paribas

77 |

emerging markets likely to hold investors’ attention in 2016 The 2016 Outlook compiled by the K2 team at Franklin Templeton Solutions

74 | Ancoria Pension Plan

A new pension plan for I\ZPULZZ HPTZ [V ÄSS H NHW PU the market.

100 | IN GOOD COMPANY Exchanging views on life as an employee at Windsor Brokers 103 | BOOKSHELF Five of the best new business titles. 104 | MY COLLECTION Christodoulos Angastiniotis and ‘The Quality of Old’

4 | GOLD | The Business Magazine of Cyprus

Car+

Eight leading automotive companies present their products, services and latest models.

108

71 | Economic activity in

SPECIAL PROMOTIONAL FEATURE 2

108 | LUNCH WITH GOLD Michalis Papadopoulos, Head of Corporate Communications at CYTA 111 | BUSINESS CLASS Dieter Rohdenburg, CEO of Intership Navigation Co Ltd 112 | WHAT’S ON Gold’s guide to the best cultural events of the coming month.

114 | A DAY IN THE LIFE Anastasia Papadopoulou

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| EDITORIAL |

Rules and Regulations

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang

n 2013, when the Global Forum on Transparency and Exchange of Information for Tax Purposes evaluated Cyprus as ‘non-compliant’, the race was on to amend gaps in the system and restore the island’s reputation. Last October, the island’s supplementary report on the changes made to its legal framework and practices was approved by the Global Forum, which reclassified Cyprus as ‘Largely Compliant’ The pressing need for the country’s infrastructure, legal framework, tax system and professional services to be officially recognised as being of the highest standards forced the tax authorities, accounting and legal firms to take action. They proved, and not for the first time, that when it is considered absolutely essential, they can work together and get things done. Corporate and regulatory compliance are still seen by many firms around the world as a major headache – and not entirely without reason. But in today’s global financial environment, regulated entities no longer have any choice in the matter: they either comply or face crippling fines and, ultimately, loss of licence. For this month’s cover story (page 26), we spoke to Compliance Officers and other representatives of leading firms in a variety of regulated areas (banking, legal, Forex, accounting, fiduciary, etc.), as well as to the Cyprus Securities and Exchange Commission, to find out how much importance they give to the compliance issue. The conclusion? An incredible amount. To quote one of the experts featured (Eleftherios Philippou, Deloitte), “We cannot speak of good corporate governance if there are no strong compliance systems in place.” Another point to emerge from our discussions on the subject is that almost everyone we spoke to recognises that a singular lack of compliance played a major role in the collapse of the island’s banking system and economy three years ago. Once again, being forced to change things brought out the best in both the public sector and the business community but doubts are already being expressed about what the future holds, once the Troika is out of the picture. This is also one of the points taken up by Kyriakos Iordanou, General Manager of the Institute of Certified Public Accountants of Cyprus (ICPAC) in a wide-ranging interview (page 22). However, as we try to look forward with optimism, we also feature the ‘futuristic’ Microsoft Innovation Center Cyprus (page 18) and take a look at a new building that will soon claim the impressive title of tallest seafront residential tower in the Mediterranean (page 66). Add to this our regular features that give you insight into the thoughts and ideas of people like lawyer Anastasia Papadopoulou and Cyta’s Head of Corporate Communications, Michalis Papadopoulos, plus a rare view of CIPA Chairman Christodoulos Angastiniotis’ fascinating collection of John Vickers, vintage radios and other equipment, and you’ll find plenty of variety in this month’s issue. Chief Editor Next month, another milestone: Issue No. 60! Don’t miss it. john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

MEDIA MANAGER

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Effy Pafitis, Artemis Constantinidou CONTRIBUTORS TO THIS ISSUE

Maria Pilidou, George Theocharides, Peter Vincent PHOTOGRAPHY

Jo Michaelides, Emma Louise Charalambous ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

PHOTOGRAPHY

Jo Michaelides, Harris Kyprianou MARKETING EXECUTIVE

Kevi Chishios

SALES MANAGER

Irene Georgiou

SALES EXECUTIVE

Stavros Epifaniou

OPERATIONS MANAGER

Voulla Nicolaou

SUBSCRIPTIONS

Myria Neophytou PRINTERS

Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

220001 2015 201 1155 015

Leading ding in eeaaad ading adin i g Corporate rporat rpor rrp porat ate te Adviser d i dviser vise vi v serr of tthe Year he h Y Yea ear Yeea earr Southh East E t Europe E oop Euro ope pe p

info@eurofast.eu | www.eurofast.eu

Eurofast: Your Regional Business Advisory team Who we are Eurofast is a regional business advisory organisation operating in South East Europe and East Mediterranean offering various professional services including M&A and Transactional Advisory, Business Restructuring & Insolvency, Market Entry Services, Banking and Financial Services, Outsourced Payroll and Employment Solutions, Citizenship & Residency Services, Corporate Services, Transfer Pricing, International Tax, Tax Planning & Tax Compliance, and Accounting. We Specialise in M&A & Transactional Advisory We, take pride in our dedicated team of professionals, specialising in M&A and transactional work in our offices, throughout South East Europe and East Mediterranean. Eurofast has over 28 years of experience working with global businesses and leading institutions. Over the years we have performed a successfully significant number of local and international M&A transactions in the region. We have a unique approach to support M&A transactions at international level through our professional network, providing assistance to our clients in all phases of M&A transactions from planning process to closure and post integration.

Our Network We are uniquely positioned as one stop shop for investors looking to enter South East Europe and Eastern Mediterranean. We have 21 fully fledged offices in Athens, Thessaloniki, Nicosia, Sofia, Bucharest, Belgrade, Podgorica, Tirana, Skopje, Zagreb, Pristina, Banja Luka, Sarajevo, Cairo, Alexandria, Tbilisi, Beirut, Erbil, Moscow, Kiev and Tehran.

quality or service. Our portfolio includes a number of high net worth individuals and clients engaged in every sector of the economy, which proves the range of our abilities. Our competitive advantage stems from our ability to serve our clients promptly, efficiently and effectively. Every Eurofast office consists of teams ranging from 15-60 professionals with diverse backgrounds and experience including tax, legal, M&A, payroll, accounting, audit and consulting.

Our credentials Our clients, global brands and leading institutions, operating in the manufacturing, retail, airlines and professional services sector, are the vivid evidence that Eurofast is your trusted business advisor in South East Europe and East Mediterranean. We have achieved worldwide market recognition for our exceptional advice, capabilities and innovation. We have been acknowledged as a leader in Tax in Cyprus for the past 8 years. We have been ranked top Tax Advisors and announced “Cyprus Tax firm of the Year” by International Tax Review which is a true recognition for the valued client work we deliver every day. In 2014, Eurofast was also recognized for its expertise in M&A. For 2015 we were acknowledged by Acquisition International as ‘Leading Corporate Adviser of the Year – South East Europe’ for our work done in the Region.

Our competitive advantage We seek to delight our clients, by being proactive. Our aim is to create client enthusiasm by giving even more value to our clients, whether measured by price, performance,

Eurofast is Taxand Cyprus.

For more information on Eurofast, its offices and its service portfolio, please visit www.eurofast.eu. 100 | GOLD | The Business Magazine of Cyprus

BUSINESS BRIEFING EDUCATION

APPOINTMENTS

ICAEW GRADUATION

ICAEWâ&#x20AC;&#x2122;s graduation event on 28 January celebrated the achievements of 135 ACA graduates with V]LY N\LZ[Z PU H[[LUKHUJL 0*(,> 7YLZPKLU[ (UKYL^ 9H[JSPÉ&#x2C6;L [VSK [OL NYHK\H[LZ! Â¸)` WHZZPUN your exams, youâ&#x20AC;&#x2122;ve opened up the door to a very exciting career. The ACA is internationally-recVNUPZLK HUK ^L ^PSS VÉ&#x2C6;LY `V\ H UL[^VYR HUK VUNVPUN WYVMLZZPVUHS Z\WWVY[ ÔLYL]LY `V\Y JHYLLY [HRLZ `V\ Âš *`WY\Z ^HZ [OL Ă&#x201E;YZ[ JV\U[Y` V\[ZPKL [OL <2 ÔLYL (*( Z[\KLU[Z ^LYL HISL [V Z[\K` HUK THYRLK [OL Ă&#x201E;YZ[ Z[LW [V^HYKZ THRPUN P[ H [Y\S` PU[LYUH[PVUHS X\HSPĂ&#x201E;JH[PVU THRPUN P[ H RL` PU[LYnational market for ICAEW. The successful graduates will now go on to complete their practical ^VYR L_WLYPLUJL YLX\PYLTLU[Z H[ ÔPJO WVPU[ [OL` ^PSS IL HISL [V ILJVTL M\SS 0*(,> TLTILYZ HUK call themselves ICAEW Chartered Accountants.

M TOURIS

RICS CYPRUS

RICS Cyprus has appointed a new Board of Directors, the Chairman of which is Pavlos Loizou, Partner, Resolute Asset Management for Greece and Cyprus.

IN THE NEWS

CYPRUS UNION OF SHIPOWNERS

The Cyprus Union of Shipowners has reappointed Polys L. Haji-Ioannou as Honorary President. Andreas Hadjiyiannis was named President of the Executive Committee.

CTO aims for 2.9 million visitors

he Cyprus Tourism Organisation (CTO) aims to increase tourist arrivals to 2.9 million in 2016, representing a rise from 6% to 7% in both tourist arrivals and revenue over last year. During a discussion of the CTOâ&#x20AC;&#x2122;s budget, CTO Chairman Angelos Loizou also told the House Finance Committee that the appointment of an Under-Secretary for Tourism would allow the CTO to focus on the promotion of the industry while the appointee would focus on the political aspects.

Casino shortlist due

he government will soon have a shortlist of three bids for the creation of a casino resort in Cyprus. The Permanent Secretary of the Ministry of Energy, Commerce, Industry & Tourism, Stelios Himonas, told MPs. During the first phase of the process eight bids were submitted. Media reports suggest that the three most likely shortlisted bidders are: Hard Rock, Northfieldâ&#x20AC;&#x2122; Sun International, and Bouygues. The plan is to issue the licence within 2016 and have the casino resort ready in approximately two yearsâ&#x20AC;&#x2122; time. 8 | GOLD | The Business Magazine of Cyprus

HALLOUMI

OBJECTIONS The Ministry of Agriculture,

Rural Development & Environment has received nine objections to Cyprusâ&#x20AC;&#x2122; request to patent Halloumi cheese as an exclusive product of the island. The objections are from companies in the UK, Australia, New Zealand, Turkey, the UAE and the US. If no compromise is reached, the European Commission will rule on whether Cyprus can patent the cheese as an EU Protected Designation of Origin (PDO). Last year, the Commission published the application for the registration of the name Halloumi / Hellim (in Greek and Turkish) as the protected name for the traditional cheese produced throughout Cyprus.

IFA UKRAINE

Christodoulos Damianou, Executive Director of Eurofast Global Ltd, has been elected as a Member of the Board of IFA Ukraine for 2016-2017.

ECHR

The Council of Europe Parliamentary Assembly has elected Cypriot Family Court Judge Georgios A. Serghides as a judge at the European Court of Human Rights.

BAKER TILLY SOUTH EAST EUROPE

Neofytos Neofytou has joined Baker Tillyâ&#x20AC;&#x2122;s South East Europe team as a Senior Tax Consultant for Cyprus, Greece, Romania, Bulgaria and Moldova.

VISITORS

VYTENIS ANDRIUKAITIS

HRH THE PRINCESS ROYAL

KYRIAKOS MITSOTAKIS

he European Union Commissioner for Health and Food Safety, Vytenis Andriukaitis, paid a two-day visit to Cyprus on 11-12 February. After his first meeting with Health Minister George Pamboridis, Andriukaitis said that he was happy to be in Cyprus at what he called “this crucial moment” as efforts are being made to establish a National Health Service. “We see Cyprus’ steps as a good example for other EU countries,” he told the Minister, while acknowledging the difficulties involved.

he Princess Royal (Princess Anne) visited British Forces Cyprus and the United Nations in Nicosia, where she spent time with British troops serving on the island on 4 February. The Princess inspected a Guard of Honour and toured the ‘Green Line’ which divides Nicosia. She also met British Forces personnel based at RAF Akrotiri, who are supporting operations over Iraq and Syria, spending time with members of various Corps and Regiments of which she is Colonel-in-Chief.

uring a visit to Nicosia in January, the newly elected leader of Greece’s New Democracy party, Kyriakos Mitsotakis, praised the performance of the Cypriot economy, noting that the island is on course to exit the Memorandum signed with the Troika in 2013. Mitsotakis, the son of the former Greek Prime Minister Constantinos Mitsotakis, underlined the need for Turkey to honour its commitments to the European Union on limiting and controlling the influx of immigrants from its territory to Greece.

RGY ENE

CYPRUS, TWO-YEAR BG GROUP ISRAEL, GREECE SIGNS BLOCK EXTENSION FOR TRILATERAL ENI-KOGAS 12 DEAL SUMMIT

resident Anastasiades and the Prime Ministers of Israel and Greece, Benjamin Netanyahu and Alexis Tsipras, met in Nicosia last month and agreed to strengthen cooperation in [OL ÄLSKZ VM LULYN` [V\YPZT YLZLHYJO HUK [LJOUVSogy, environment, water management, combating terrorism, and migration. The main focus is on the energy sector, in particular natural gas, as well as projects such as the EuroAsia Interconnector for electricity and the EastMed Pipeline.

G Group has taken a 35% holding in Block 12 of Cyprus’ Exclusive Economic Zone (EEZ), which includes the Aphrodite gas discovery. An agreement to [OPZ LɈLJ[ ^HZ ZPNULK VU 1HU\HY` <: based Noble Energy remains the main operator of Aphrodite with a 35% share, while ). HJX\PYLZ HUV[OLY ^P[O +LSLR .YV\W YL[HPUPUN [OL YLTHPUPUN ¶ ZWSP[ LX\HSS` between Delek Drilling and Avner Oil.

€650,000

`WY\Z HUK [OL ,UP 2VNHZ JVUZVY[P\T have signed a two-year extension of the initial exploration in Cyprus’ Exclusive Economic Zone (EEZ). ¸;OPZ KL]LSVWTLU[ PZ LZWLJPHSS` PTWVY[HU[ HZ P[ YLHɉYTZ HUK HK]HUJLZ *`WY\Z» energy prospects during a period in which the international oil and gas industry is experiencing challenging conditions” a press release notes. The consortium will conclude studies in order to identify prospects necessary to complete its drilling obligations.

THE AMOUNT THAT THE GOVERNMENT EXPECTS TO SAVE BY OUTSOURCING PART OF THE SECURITY OPERATION AT CYPRUS’ TWO INTERNATIONAL AIRPORTS TO THE PRIVATE SECTOR AND THUS REDUCING THE NUMBER OF POLICE OFFICERS WHO CURRENTLY CARRY OUT CHECKS ON PASSENGERS. www.goldnews.com.cy | GOLD | 9

BUSINESS BRIEFING

AIR TRAVEL Ryanair

Ryanair launched its new LarnacaBrussels route on January 18. It ^PSS VWLYH[L ÅPNO[Z [^PJL ^LLRS` VU Monday and Friday. Hermes Airports’ *,6 >LZ 7VY[LY JVTTLU[LK ¸>L are delighted to see Ryanair returning to Larnaca Airport and strengthening its presence in Cyprus. Through strategic planning and branding, the Larnaca-Brussels route could become one of the favourite routes for business and leisure purposes for thousands of travellers, both Cypriots and CentralEuropeans.”

Emirates

Emirates launches its new daily Larnaca-Athens service on 1 March HUK PZ J\YYLU[S` VɈLYPUN ZWLJPHS promotional return fares starting from €129 in Economy Class. It will depart Larnaca at 11.50am, arriving in Athens at 1.35pm. ;OL YL[\YU ÅPNO[ ^PSS SLH]L ([OLUZ at 4.15pm, arriving in Larnaca at 6.00pm.From 27 March 2016, the Larnaca-Athens service will IL H]HPSHISL Ä]L [PTLZ H ^LLR VU Sunday, Tuesday, Thursday, Friday and Saturday.

Cobalt Air

Cobalt Air, a new Cyprusbased airline, has secured an \UZWLJPÄLK HTV\U[ VM JHWP[HS MYVT H /VUN 2VUN IHZLK investor, airline chairman Gregory Diacou revealed this TVU[O ¸;OPZ IYVHKLUZ V\Y investor base to include both Cypriot and Chinese capital and is a major boost to our plan to launch operations [OPZ `LHY HZ *`WY\Z» UL^ ÅHN carrier,” he said in an interview. Cobalt plans to launch budget operations later this spring.

Tus Airways

Tus Airways made its inaugural ÅPNO[Z [V ;LS (]P] HUK /HPMH VU February 14. The company aims to connect Cyprus with neighbouring countries, including Greece, Egypt, Israel, Lebanon and Jordan. The airline’s initial [HYNL[ PZ [V VɈLY ÅPNO[Z [V H [V[HS of 16 destinations. Tus Airways will eventually operate seven ^LLRS` ÅPNO[Z IL[^LLU 3HYUHJH and Tel Aviv and between Larnaca and Haifa. One-way fares to Tel Aviv start at €69.

AWARDS

ETIHAD AIRWAYS

EUROFAST

Eurofast Global was named Leading Corporate Adviser of the Year in South East Europe at this year’s Acquisition International Awards. The awards mark excellence in all areas of corporate business consulting and are voted for by a global network of expert professionals, advisers, clients, peers and industry insiders.

MTN

Etihad Airways, the national airline of the United Arab Emirates, won two leading global financial accolades the same week: the 2015 Corporate Recognition Award for Innovation and Excellence from the financial publication Treasury Management International and the Emerging Europe Middle East and Africa Bond of the Year from the International Financing Review (IFR).

MTN has been awarded with the Silver Accreditation by Investors In People, the UK’s leading accreditation for business improvement through people management. The award is for MTN’s excellent people management, its commitment to realizing the potential of its human resources and its creation of a work culture conducive to teamwork.

10 | GOLD | The Business Magazine of Cyprus

ANDREAS NEOCLEOUS & CO LLC

Andreas Neocleous & Co LLC was runner-up for the Mediterranean Law Firm of the Year award at last month’s 2016 Citywealth International Financial Centre Awards in London. The prominent Cypriot law firm competed against firms from across the whole Mediterranean region, including Gibraltar (from where the overall winner came) and Malta.

MY WAY

Evangelia Eliadou

Executive Director, 3DÀOLD

CONTRARY TO POPULAR PERCEPTIONS OF LEADERSHIP AS A SOLITARY BATTLE, EVANGELIA ELIADOU CITES TEAMWORK AS AN INTEGRAL COMPONENT TO THE MANAGEMENT MACHINE. HERE SHE TELLS GOLD HOW SHE LEADS BY EXAMPLE, INSPIRING HER WORKFORCE TO CHALLENGE THE BOUNDARIES OF THEIR INDUSTRY AND GUIDING THEM – AND THE FIRM – TO SUCCESS.

“M

y leadership style has been influenced most by the corporate approach of Pafilia; our industry is very demanding and salesoriented by nature, so our priority is always our customers and the services we provide. Before making any business decision, I determine how this will affect our clients. Additionally, my background in law has offered me a practical and realistic multifaceted perspective.”

“M

y greatest

professional achievement has been contributing to the resilience and flexibility our management team and employees. As a company, we have to adapt to constantly changing market conditions and my role has been pivotal in managing these changes and helping our company – and people – adapt to a developing business environment.”

“H

ow would I describe my management style? Different circumstances demand different approaches but, for me, teamwork is the most important factor. The best results are often achieved by team members who complement each other with different skills, expertise and personalities. I constantly try to keep my colleagues motivated by allowing everybody to have input into the decision-making process and encouraging efforts towards a common goal. I believe anything can be achieved through hard work and I try to lead by example; at the same time am very demanding and results-oriented.”

“T

he object of my professional admiration is the late Steve Jobs, although I genuinely admire everyone who has achieved success after a lot of hard work and precision. Jobs was an exceptional individual who managed to change the face of his industry time and time again, while continually striving for perfection and simple functionality.”

“T

he biggest mistake that managers make is not trusting and not being patient enough to listen to their people. Often, in their effort to do everything right, they try to do everything themselves. My management style is summed up by the phrase “Trust but Verify”; you need to hire the best people for the job, be patient and allow their development, then slowly give them more and more responsibility.”

“I

“H

ow do I achieve a healthy balance between life at work and at home? Everyone in a demanding position tries to achieve this but, however hard you try, it’s not easy. I try to devote weekends to my family and spend as much time as possible with them, as they are my inspiration. We also plan holidays twice a year where it is just me, my husband and children. I believe everybody needs to have a good work/life balance, ance, but above all you need eed to appreciate what you have.”

relax by exercising at the gym or swimming in the sea every morning, even in the winter. This gives me the energy I need to get through the day in the best shape. At night I like to have a nice relaxing dinner with family or friends. A favourite pastime of mine is reading, something which captures my imagination and provides an escape.”

Evangelia Eliadou holds an LLB Degree and a Master’s in Commercial and Corporate Law from Kings College University of London. She practiced law before joinMRK XLI JEQMP] FYWMRIWW 4EÁPME Property Developers and Group of Companies. As Executive Director, she is directly responsible for the Group’s Sales and Marketing departments.

www.goldnews.com.cy www goldnews com cy | GOLD | 11

FIVE

MINUTES WITH

ow has Fileminders evolved over the years? We started back in 2003 as a single-service provider, offering Secure Document Storage, Scanning and Secure Destruction, with just a handful of employees and a small number of clients. Nowadays, we are leaders in the field of Information Management with 150 employees, over 750 clients and an infrastructure that allows us to enhance our spectrum of services. Our purpose is to help our business associates “survive” in this highly challenging, information-driven world! Our client list, which includes top tier international and major local organisations that constitute the backbone of the economy, shows the level of service quality we offer. We constantly invest in improving what we do and how we do it. We are ahead of the competition, as the only quality player in the market with privacy and security embedded deeply in our company’s DNA. What, in your opinion, distinguishes Fileminders from other companies that offer similar services? Our strongest differentiators are our cuttingedge infrastructure, our robust strategic business partnerships and the fact that we are a people driven business. Since our establishment, our staff have been the key ingredient in the company’s continuous success. With over 150 employees (average age 28 and a female/male ratio of 52%/48%), we provide a young, dynamic and challenging working environment. As an equal opportunities employer, we work hard to transform our employees into industry experts. They are trained annually on Customer Satisfaction issues, Leadership, Quality & Compliance as well

12 | GOLD | The Business Magazine of Cyprus

ANDREA ANTONIOU

as on improving their technical skills. In addition, they participate in international and local industry-related conferences to increase their industry insight. Our efforts have been recognised by OEB, Investors in People International and the European

CEO Fileminders Business Association through the awards and certifications of Investors in People, National Champion as Employer of the Year and Sound Industrial Relations (SIR). Tell us about the company’s infrastructure We operate an unrivalled infrastructure that includes three state-of-the-art facilities in Nicosia and Limassol, including two Data Processing Centres, two Mobile Shredders and a related fleet of vehicles. We employ more than 150 information management professionals and we are constantly

investing in maintaining our cutting-edge technological superiority. In order to offer the best, we believe that one needs to partner with the best, and so Fileminders has formed strategic partnerships with some of the industry’s leaders. Through our records and information management platform, we are abl able to deliver our clients unique, comprehe comprehensive, cost-effective and bestof-breed rrecord storage and management solutio solutions that accommodate any business size and budget. With M-Files, we are able to give clients full control aand access to the right content from any business system and device anytime, anywhere. Lastly, through Intralinks, we are able to provide our clients with a platform where they can share and collaborate on highvalue information with absolute control and confidence. W What developments can we expect from Fileminders in the near exp future future? Filemind Fileminders aims to expand its competitive edge as th the only quality player of Total Document Lifecycle solutions in Cyprus, by strategically utilising the company’s strongest assets: its people, its infrastructure and its strategic partnerships. We recognise that the traditional world of records management is evolving. Historically, organisations managed their physical records separately from their electronic records. Now, the emerging trend is for businesses to try and merge the management of both their electronic and physical information by creating hybrid information management environments. This is something that most businesses find challenging but it is a challenge that Fileminders’ complete end-to-end document and information management solutions can solve in a costeffective, secure and reliable manner.

QUOTES OF THE MONTH

They Said What? 7SQI SJ XLI QSVI WYVTVMWMRK YXXIVERGIW F] ']TVMSX TYFPMG ÁKYVIW SZIV XLI TEWX QSRXL

ANDREAS THEMISTOCLEOUS

“MY ONLY CRIME WAS SPEEDING AND THERE ARE OTHER PEOPLE WHO HAVE DONE MUCH WORSE AND THEY ARE STILL WALKING AROUND FREELY.” DISY MP Andreas Themistocleous, who was caught speeding on the way to a Supreme Court hearing to remove his parliamentary immunity so that he can be prosecuted for... another 21 cases of speeding.

“I NEED TO BE PUNISHED SO THAT I CAN FACE SOCIETY AND ASK FOR A SECOND CHANCE...I WAS 39. MAYBE I WASN’T MATURE ENOUGH TO BE MAYOR.” Disgraced Paphos Mayor Savvas Vergas realises why he is in prison but shows a poor understanding of precisely when people are supposed to grow up.

SAVVAS VERGAS

“IN MY EYES, PAR“IF IT’S NECESSARY TO LIAMENT HAS NOT SET YOURSELF ON FIRE RISEN TO THE OCIN SYNTAGMA SQUARE CASION IN A MANIN ORDER TO BRING NER WORTHY OF ABOUT ENOSIS (UNION THIS COUNTRY... OF CYPRUS AND GREECE), WHEN LEGISLAI WILL FIGHT TO BE THE TIVE PROPOSALS ONE TO DO IT.” ARRIVE AT THE HOUSE, COMMITEleni Theocharous MEP, TEE SESSIONS ARE who has clearly lost the plot. She later MAYHEM.” claimed that she was simply using “poetic licence”.

ELENI THEOCHAROUS

CCCI President Phidias Pilides, not convinced that MPs are serious about civil service reform, tells them so. PHIDIAS PILIDES

“I EXPECT ALL THOSE IN THE HEALTH SECTOR, ESPECIALLY PUBLIC OFFICIALS WHO ARE RESPONSIBLE FOR THE SMOOTH OPERATION OF SENSITIVE SERVICES, TO DISPLAY THE NECESSARY SERIOUSNESS AND RESPONSIBILITY TO TACKLE THE CHRONIC PROBLEMS CREATED BY MISMANAGEMENT, LACK OF OVERSIGHT AND BAD PLANNING, AND REFRAIN FROM MAKING STATEMENTS JUST TO CREATE AN IMPRESSION.” GEORGE

PAMBORIDIS

Health Minister George Pamboridis responds to Petros Matsas, Head of the State Medical Services, who had said that government doctors are leaving the public sector because they FDQ HDUQ D PRQWK·V VDODU\ E\ performing one operation in a private clinic.

“IT WAS GOEBBELS WHO SAID, ‘IF YOU TELL A LIE BIG ENOUGH AND KEEP REPEATING IT, PEOPLE WILL EVENTUALLY COME TO BELIEVE IT.’ I THINK THIS IS WHAT IS HAPPENING TO DIKO.”

AKEL General Secretary Andros Kyprianou, in response WR ',.2·V DFFXVDWLRQ WKDW WKH Presidential Palace and AKEL were behind the leaking of a National Council document. ANDROS KYPRIANOU

“CAN YOU TELL ME HOW SERIOUS A SIDE CAN BE WHEN IT MAKES PUBLIC THE ISSUES ON WHICH IT IS NEGOTIATING, ESPECIALLY VIA THOSE WHO ARE SUPPOSED TO BE ADVISING THE PRESIDENT?” President Nicos Anastasiades is more convinced than ever that the National Council does more harm than good.

NICOS ANASTASIADES

www.goldnews.com.cy | GOLD | 13

IN BUSINESS AWARDS 2015

Loucas 4HYHUNVZ ;-0 4HYRL[Z

*OYPZ[PHUH Georgiou 3LM[LYPZ ([OHUHZPV\ 4;5

he 8th IN Business Awards ceremony took place at the Hilton Park Hotel in Nicosia on January 21. The prestigious annual awards recognise business excellence in Cyprus in a total of 11 categories. The event was sponsored by Hellenic Bank, with MTN Business and Chivas Regal Extra as Gold Sponsors and TFI Markets as Silver Sponsor. The evening was presented by Chrysanthos Tsouroullis.

Irena Georgiadou, Hellenic Bank

Francesca Avgousti & Jenny Solomonidou, Hellenic Bank

4PS[VZ /HKQPTPJOHLS :H]]HZ +VSVYVZ ,]YVZ Papadopoulos, Laiko Cosmos Trading

AS THEY DO EVERY YEAR, THE SPONSORS OF THE IN BUSINESS AWARDS 2015 BROUGHT THEIR OWN SPECIAL BRANDING TO THE EVENT. /LSSLUPJ )HUR OHZ WYLZLU[LK [OL 05 )\ZPness Awards since [OLPY PUJLW[PVU HUK [OPZ `LHY ^HZ [OL [O [PTL [OH[ [OL )HUR OHZ Z\WWVY[LK [OL L]LU[ [OH[ YLJVNUPaLZ [OL ILZ[ VM I\ZPULZZ PU *`WY\Z ;OPZ `LHY /LSSLUPJ )HUR prepared a special card THKL VM JOVJVSH[L ^OPJO HJJVTWHUPLK [OL dessert. 4;5 VɈLYLK HSS H[[LUKLLZ H 4VSLZRPU UV[LIVVR HUK ;-0 4HYRL[Z H ZWLJPHS LKP[PVU VM [OL 9\IPR *\IL *OP]HZ RLW[ P[Z HUU\HS KH[L H[ [OL 05 )\ZPULZZ (^HYKZ ^P[O *OP]HZ 9LNHS ,_[YH

14 | GOLD | The Business Magazine of Cyprus

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Loukis Petrides, Founder, Cosmos ;YHKPUN ^P[O [OL 3PML[PTL (JOPL]LTLU[ Award

Stavros Evagorou, Deputy Parliamentary Spokesman VM (2,3 and ICPAC President Demetris Vakis presented [OL :LY]PJLZ (^HYK [V 4;5 Business Director Andreas Neocleous

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;OL .YLLR (TIHZZHKVY [V *`WY\Z ,SPHZ -V[VWV\SVZ HUK [OL /LHK VM [OL ,\YVWLHU *VTTPZZPVU Representation in Cyprus, George 4HYRVWV\SPV[PZ WYLZLU[LK [OL *:9 Award to Andri Ioannou, Brand 4HUHNLY VM [OL ^PUUPUN Ã&#x201E;YT .74 /LURLS +P_HU www.goldnews.com.cy | GOLD | 15

| IN BUSINESS AWARDS 2015 |

Petros Vassilopoulos, G.A.P. Vassilopoulos & Emily Petridou, Laiko Cosmos Trading

)LY[ 7PQSZ Hellenic Bank

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Eleonora 6Y[OVKV_V\ * ( Papaellinas

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4PJOHLS :WHUVZ Green Dot Cyprus

7VS` /HKQPNLVYNPV\ :^PWL 3[K 4HYPH Ioannou, Eminentia Trading Ltd

Aliki Drakou, Cyta

Emily Yiolitis, Harneys Aristodemou Loizides Yiolitis

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PLATINUM SPONSOR Klelia Pilakouta & 2VKYVZ 7PSHRV\[HZ *OHY Pilakoutas Group

16 | GOLD | The Business Magazine of Cyprus

(SL_PZ 5PJVSHV\ 5PJVZ 4H]YV\KLZ 7OV[VZ 7OV[PHKLZ Group

Christos Michael, First Names Cyprus

Chris Christodoulakis & Nicolas Benioudakis, Lanitis Bros, Andrea Hadjivasiliou & Elias Antoniades, Partners/Y&R

Renos Andreou & Michalis Andreou, McDonald’s Cyprus

Sakis Theodosiou, Green Dot Cyprus, Panayiotis Papaphilippou, Papaphilippou & Patisserie Panayiotis Ice Cream Ltd, & Sotiroula Sotiriou, Charalambides Christis Ltd

Lakis Λάκης Τοφαρίδης από Tofarco Tofarides, Tofarco

Maro Panayiotou, JCC Payment Systems Ltd & Elena Mouzouri, KPMG

Evgenia Christodoulou, Ancoria Bank, Michalis Ioannides, JCC Payment Systems Ltd, Andreas Theodorides, USB Bank & George Appios, Piraeus Bank

Chrysanthos Tsouroullis, presenter

5H[HSPL *OYPZ[VÄKLZ Demetris Ioannides, Action Global Communications Demetris Assiotis, 7HÄSPH

Finance Minister Harris Georgiades & Omiros Pissarides, Axia Ventures Group Ltd

Andreas Avraamides, EY, Christis M. Christoforou, Deloitte, Maria Kyriacou & Andreas Neocleous, Andreas Neocleous & Co LLC

www.goldnews.com.cy | GOLD | 17

| TECHNOLOGY |

Valia Constantinidou and Ioannis Stavrinides

INVESTING IN

THE FUTURE 18 | GOLD | The Business Magazine of Cyprus

Six months ago, the latest Microsoft Innovation Center opened in Nicosia, making Cyprus the 38th country to host what is much more than a fancy room with computers. By John Vickers Photo by Emma Louise Charalambous

ne only has to step into the small but stunning Microsoft Innovation Center (MIC) at European University Cyprus to realise that this is like nowhere you have ever been on the island. What MIC coordinator Valia Constantinidou describes as “the ‘Wow!’ factor” is almost tangible and, not surprisingly, it has quite an impact on visitors, especially schoolchildren and students. “We want to spark their curiosity because they are the future and we want to show them what you can do with technology. That’s why we built that ‘Wow!’ factor into our MIC,” explains Ioannis Stavrinides, whose role as ‘Technical Evangelist’ for Microsoft technologies means that he gets to speak to young people from as early as primary school, through secondary school and right up to university level and beyond. “When they go inside the centre, they feel that they’re somewhere in the future,” he goes on, ”and that helps the imagination. One of our aims is to bring all of the students in Cyprus to visit the MIC.” The Cyprus MIC is the only one in the world (there are 110 at present) to be housed on university premises and, says Valia Constantinidou, “it is not only prestigious for European University Cyprus to have an MIC but, because it’s the first to be located at a university, it’s a case study in itself.” So what precisely is it for? In brief, says Stavrinides, it’s a community centre. “It’s a place to which Microsoft has com-

mitted both money and time in order to help drive innovation, to help people gain technical skills for their own benefit, to drive industry projects and thereby create job opportunities, and, in general, to be a central focal point where all of the start-up communities, for instance, can come under one umbrella and we can help people figure out where they need to go to achieve their goals.” The main audience consists of students of all ages and, crucially, at all schools and academic institutions. “It’s open to pretty much everyone,” says Constantinidou. “They don’t have to be European University Cyprus students. We want to be involved with the whole spectrum and we have already had a lot of schools visiting and we are very interested in working with them to create an innovative classroom experience at some point – maybe at the end of the year – and launch our own innovative approach to the school curriculum. Also, a lot of students are interested in participating in projects that we would like to launch this year.” So what kind of reaction and feedback has the MIC had from the young people for whom it has been set up? “It’s been great,” says Stavrinides. “First of all, just seeing the space makes an impression, and when we talk to the students and explain what we are offering them, that’s where the real impact takes place. They understand that it’s

The ‘Wow!’ factor is almost tangible not just a fancy room with a lot of tech in it but a place where they can learn things, whether technical or soft skills, and where we can help them engage with start-ups so they can either launch their own or join another. We like to think of

www.goldnews.com.cy | GOLD | 19

| TECHNOLOGY |

it as a hub where someone can come and say, ‘I would like to do this’ and our goal is to help them achieve it.” Interestingly, adds Valia Constantinidou, the reaction is pretty much the same, whether the visitors are primary school children or university students. “They are positive from the moment they step inside and, once we start explaining what everything does, we get some remarkable responses. They are extremely interested in learning how everything works and it’s quite amazing how young people come up with fantastic ideas about how something they see there could be used in another environment.” “One of the things we do to showcase the MIC,” continues Stavrinides, “is to give the students a taste of certain products, which are purposely not finished, and we ask them what they would do with that technology. This really sparks the imagination, especially that of the younger ones.” He notes that while trainings on Microsoft and open-source technologies have been delivered to students, those using other technologies are also catered for: “We invite people who are non-Microsoft technology-related to deliver the same experience to the students,” he explains, stressing that “it’s not just about Microsoft, even though the centre bears its name.” The Cyprus MIC is also involved with all the local start-up communities and, through the BizSpark programme, it offers free software to start-ups, free cloud services and free technical expertise to help them develop their ideas and solutions. “I have daily discussions with them,” says Ioannis Stavrinides,” to help them get to the minimum viable product (MVP) stage so that we can push them to market and, through the global MIC network, expose them to the other MICs and help them go to other places like Brussels or France or the UK and present what they’re doing out of Cyprus, either to other start-up communities or even to

20 | GOLD | The Business Magazine of Cyprus

investors in other countries.” Are the start-ups being created by current students or graduates? “It’s definitely a mixture,” says Stavrinides.”They are mostly people who have graduated and, instead of looking for a job in a company, have decided to follow their dream. But in a lot of start-ups there are one or two students working on a semi-permanent basis. There’s a great deal of talent in the student community that can help start-ups go forward and their involvement is also a way of helping them stay in Cyprus.” In response to the recent trend for talented young people, especially in the

We certainly need to stop the brain drain

technology field, choosing to go abroad, the MIC Cyprus is due to launch an internship platform so that technical, business and engineering students are given a chance to use their skills in a hands-on way in companies. “We certainly need to stop the brain drain,” says Valia Constantinidou. Given that innovation is key to its existence, one can logically assume that the MIC itself will be undergoing constant change and upgrades. “Of course,” says Stavrinides at once. “We are a start-up too! That’s how we like to view ourselves, rather than as an organisation that is static. Start-ups are always thinking about the next big thing, about how to do new stuff, how to create new things and new ideas and that is precisely what we’re trying to do. We don’t just want to be supportive and help people – which is, of course, one the main pillars of our work – but we ourselves need to be questioning things and coming up with new ideas, so that people will start thinking that way and driving innovation across industries, across verticals, across everything.”

Both are agreed that Cyprus has never been the easiest environment for academics and students and certainly not for innovation. “Innovation has been big in other countries for a long time,” says Valia Constantinidou,” and unfortunately we needed certain events to occur to drive it here. But, given what has happened, I think the timing was perfect for the establishment of the MIC.” When I ask them about their ultimate aspirations for the MIC, they both start laughing; not because the question is a bad one but because they have so many aspirations that they don’t know where to start. “As a start-up we would like to be quite disruptive,” says Constantinidou, “but, at the same time, we think big and we have huge dreams for the future. I will be happy if we are able to offer even half of the things we plan to do over the next couple of years. That will be a big success.” “We have very big ambitions and we know that they are hard to achieve but we are working hard towards making them real,” says Stavrinides. “We want to be a single point of reference within Cyprus when it comes to innovation. We want to be able to drive job opportunities, to help students achieve their own greatness and do what they want to without having to go to another country. Like all start-ups, we’re shooting for the stars.” Strategic partners of Microsoft Innovation Center Cyprus: ʜLYUOHYK :JO\S[L :OPWTHUHNLTLU[ c *`WY\Z *VTW\[LY :VJPL[` c *57 (:-(30:;020 HUK *57 *@790(30-, TLTILYZ VM [OL NYV\W *57 *@79<: 05:<9(5*, /63+05.: c *`[H c ,__VU4VIPS ,ZZV *`WY\Z 3[K c ,@ *`WY\Z c .UVTP *VTT\UPJH[PVU *VUZ\S[HU[Z c /LHKJHUK` c 05 )\ZPULZZ THNHaPUL c 3H\YLH[L 0U[LYUH[PVUHS <UP]LYZP[PLZ c 3VNPJVT 7\ISPJ c 5L[< For more information: 4PJYVZVM[ 0UUV]H[PVU *LU[LY *`WY\Z B[D TPJ J` WY\Z'L\J HJ J` O[[WZ! ^^^ MHJLIVVR JVT TPJJ`WY\Z

| ACCOUNTANCY |

ICPAC

%8 ăă

This year, the Institute of Certified Public Accountants of Cyprus (ICPAC)) celebrates the 55th anniversary of its establishment. From its humble beginnings in 1961, its membership has as grown from the 21 founders to more than 3,600, while catering for another 3,000 students too. As General Manager ger Kyriakos Iordanou explains, in the past st three years alone, ICPAC has evolved d into an organisation that is bigger and d better than at any time in its history. Of course, more responsibilities and obligations have brought even greaterr challenges.

By John Vickers | Photo By Emma Louise Charalambous bous

old: The last time I interviewed you was in April 2012. A great deal has changed ged in Cyprus since then. How has ICPAC AC evolved? Kyriakos Iordanou: I believe it is truee to sayy that 2012 is like a sweet memory, compared mpared to our current obligations and duties and the path we have followed over the past few years. The Troikaa and other factors have shaped our development since then. Today,, the mbers Institute is responsible for the professional activities of its members under four different pieces of legislation: It is the competent authoruthority for statutory auditors and audit firms. In addition, we havee been a competent authority for anti-money laundering (AML) purposes poses under the relevant Law. In December 2012, the law concerning ng orce, Administrative Service Providers (fiduciary firms) came into force, rendering ICPAC one of the three competent authorities. Thee Troika placed specific emphasis on AML issues, hence an attachchment to the Memorandum of Understanding (MoU) concerning ning an AML action plan for Administrative Service Providers. Since ce then, together with the other competent authorities, we’ve successccessarding fully undergone more than10 evaluations and assessments regarding AML matters. Finally, in 2015 the Insolvency Practitioners Law aw wass enacted, whereby ICPAC is once again taking the role of one of the lating three relevant competent authorities. Hence, we are now regulating 22 | GOLD | The Business Magazine of Cyprus

f three professions, w for with increased responssibilities for compliance complianc and AML. G Gold: This obviously means lots of extra work. Did it force yo w you to expand and make changes to your own working m methods? m K.I.: Yes. In order to h K handle all these new rresponsibilities and become bec more effective iin our daily work, we h had, of course, to exttend our working hours hour and to engage other people and consultants in order to develop p oour monitoring system systems and operations at a significant cost. We set s up a new website, iintroduced new electro electronic systems, increased ccommunication with our o members, deployed a specific monit p monitoring tool for AML aand so on. To meet ou our objectives and be rresponsive to the new d developments, we also sset up new specialized member committees aat the Institute, raising their number to 24. IInevitably, we had to adapt a to the new era ttoo. G Gold: Despite the inc increased workload aand additional respon responsibility, would yyou acknowledge that tha the Institute has aactually become a bet better organisation, never have happened ssomething that may n under different circumstances? u circum K.I.: ICPAC has been improving and growK iing since its inception, passing a number times. Regarding our oof dire milestones at tim eexperience during the rrecent financial crisis aand the interaction with wit the Troika, I can school for all, ssay that it has been a useful u Government but every other not just the Governme n oorganisation including ours. The Troika’s presence here underlined p underlin the fact that there all have been were many things we should w s doing much better. It put d p many things in tthe spotlight and, speaking speak from the Instittute’s point of view, it made m us realize that more on specific areas, we needed to focus mo w Another thing we also ssuch as compliance. An of the country rrealized was that the profile pr iis closely interrelated to that of our Institute ICPAC aand vice-versa. So, by promoting p profession of Cyprus aand the accountancy p arena, we are actually iin the international are promote Cyprus and thus p th helping to remove aany unfair or misleading misleadin perceptions of we have decided that tthe country. Hence, w ICPAC’s presence in iit’s time to enhance IC vvarious international fora. fo At the same time, we are also committed to hosting internaw ttional events in Cyprus in cooperation with rrenowned institutions, starting from 2017.

I can say with pride and confidence that we are probably the only accountancy body in Europe that has taken AML compliance so seriously and developed specialized monitoring tools, making us an example of good practice. Gold: The country is due to exit the Troika’s economic adjustment programme next month, which most observers see as a major achievement. How confident are you that the positive momentum will continue? K.I.: I regret to say that I am rather sceptical and not particularly confident. Once the Troika is gone and there will be no “Damoclean sword” hanging over our heads, I am afraid that there is a danger of a return to our old ways and habits, nullifying a lot of the work and sacrifices made during the past three years. It is also an unfortunate coincidence that the programme is ending just a couple of months before the parliamentary elections. It is natural that after 3-4 years of difficulty and austerity, people want to feel some kind of relief but we’re not out of the

We are now regulating for three professions woods yet! We need to remain focused on and committed to the necessary adjustments and reforms to the economy, the banking and public sectors. Regarding the implementation of reforms, apart from the banking sector, the process so far has been rather slow and, in my opinion, lacks decisiveness by all the parties involved. I acknowledge the fact that such processes can be slow-moving but we will be pushing for them. ICPAC, needless to say, is keen to provide its assistance and expertise to facilitate proper and robust reforms. Gold: What are the main issues of concern for ICPAC regarding the auditing directive? K.I.: The Audit Policy Reform, which includes a revised EU Directive and a Regulation, is under review by the Cyprus Public Audit Oversight Board (CyPAOB), which is the responsible body under the Auditors

Law. We expect to see the new law in force during 2016. One of the main changes is that CyPAOB will be the sole body responsible for the monitoring of audit firms serving public interest entities (PIE). The Regulation also imposes a number of restrictions on such firms with respect to their business activities with their PIE clients. ICPAC will maintain its audit monitoring review of audit firms but we may need to make some small adjustments. Inevitably, we will be working closely and in parallel with CyPAOB, which, apart from the audit firms, will be reviewing the Institute too. Gold: What about the EU accounting directive? K.I.: This is another directive that should have been transposed into law by now. It allows for options in its application, and we believe that provides a good opportunity to further fortify the country’s outlook for international investors with respect to tax compliance. Providing for all companies, without exception, to prepare audited financial statements will align the Companies Law with the tax laws and since this is already common practice under the tax laws, no additional burden will be imposed. We must take every necessary step to ensure that Cyprus remains a credible international business centre, as this is the primary business activity that provides for the economy. Gold: The point of the directive for bigger countries is presumably to relieve small firms of the burden of having to have to prepare accounts? K.I.: Yes, but we don’t want to go back to how things were in the past. We believe that there should be a mandatory audit for every company. For really small entities, we can put in place a system whereby their financial statements are reviewed by an auditor adopting alternative assurance procedures. Gold: Where do you stand on the longstanding efforts to maintain and improve Cyprus’ reputation as an international business centre? K.I.: I believe that we need to be more serious about it, which firstly means being more robust in our procedures and allowing as few deviations as possible. Singapore is very strict on regulation but not only has it not suffered from any loss of business because of this, it is arguably the biggest international business centre in the world. We still need www.goldnews.com.cy | GOLD | 23

| ACCOUNTANCY | to put a lot of things in place and, in my view, we could have done much more over the past three years to reduce bureaucracy, to facilitate procedures, to enrich our products and services, to render Cyprus more competitive for people wanting to do business and to make it easier for investors to come to Cyprus. ICPAC regularly submits ideas and proposals to the relevant Ministries, availing itself of the expertise and knowledge of its members. Gold: So public sector reform is clearly high on the ICPAC agenda. K.I.: Yes, and we believe that there is still a lot of room for improvement. The Institute operates a Public Sector Committee, made up of members working in the public and wider public sector. Due to the nature of our work, we come across a lot of the technical stuff on the public sector. Hence we’ve got a pretty good first-hand knowledge of many of the areas that need improvement. We have set out our proposals and, on a number of occasions, expressed our willingness to assist the government with the various bills they prepare, as well as in any other activity that falls under the heading “reform”. To avoid ineffective legislation, we believe that it would be best if a proper consultation and engagement of the most appropriate people were conducted at the preliminary/design stages. We have, unfortunately, witnessed unsatisfactory legislation being passed, which is now very difficult to amend or implement. Gold: One of the big projects set by the Troika was the unification of the tax departments by June 2016. Will it work? K.I.: Allow me to have my reservations on the timely and effective accomplishment of this project, at least as things currently stand. It is, of course, a good idea and it is another of those projects that we should have undertaken without having to be obliged to under the bailout agreement. However, my criticism of the Troika here is that they insisted on it without apparently taking everything into consideration. They pushed for a merger in a very tight time frame of two departments that are dissimilar in structure. Factors such as personnel, computerized systems and the need to produce legislation fast are vital for the success of such endeavours. This has not been the story so far, despite some positive efforts made and plenty of

24 | GOLD | The Business Magazine of Cyprus

good intentions. The new Tax Commissioner will have much to do to make this merger work. Let us not forget that the Tax Department is one of the most important government units at this point in time, and it cannot be allowed to fail. The Ministry of Finance needs to provide any support necessary for the unification project and to avoid hasty action. Gold: Global regulation seems to be growing all the time. What are you and your members preparing for these days? K.I.: Common Reporting Standard (CRS) of OECD and FATCA are the two major new projects. We are also carefully watching the proposal for a Common Consolidated Corporate Tax Base at EU level, which aims at harmonizing the tax base in all member states. We also need to be prepared for other international trends such as the OECD’s BEPS project and country-by-country reporting, both having tax effects. We are living an era of global compliance, hence we need to be always alert.

Our experience during the VIGIRX ÁRERGMEP crisis and the interaction with the Troika has been a useful school for all Gold: The other possible big change this year concerns a solution to the Cyprus Problem. Have you looked at what this might mean for ICPAC? Do you have relations with your Turkish Cypriot counterparts? K.I.: We carefully follow the political developments and try to be proactive, to the extent that we can. Firstly, let me state that I don’t believe that any reasonable person wouldn’t support a proper solution. We are fully aware of the benefits and potential it will bring to the economy, opening up possibly new, unchartered horizons! But being

accountants, we are usually more down-toearth and try to be as prudent as possible, in order to better plan the project and achieve the optimum result. The Council of our Institute has included this possibility in its short list of strategic goals and we have started making our notes. Our work is confined to technocratic, regulatory, legal and economic matters, such as the evolution of the Companies Law, tax legislation, the adoption of the EU accounting and audit Directives, AML legislation, and competition between the constituent states, as well as matters of international substance, such as the continuation of the double tax treaties that the Republic of Cyprus has signed with third countries. Issues that may jeopardise Cyprus’ reputation as an international business centre or its compliance profile need to be properly taken care of. In addition, we are thinking about the future of the accountancy and audit profession, since the way we operate is not the same as how Turkish Cypriot accountants work in the occupied areas (i.e. concerning the use of accounting and auditing standards, the adoption of the EU Directives, qualifications for auditors, etc.). We believe that if these issues are discussed and cleared in advance by the political leaders, the consolidation of the economy will be greatly facilitated. Currently, we have Turkish Cypriot accountants registered either as ICPAC members or students and we would like to embrace all Turkish Cypriot professional accountants and work together with them, thus boosting prospects for the profession and the economy. That said, I have to note that, as one of the key players in the economy and a competent authority for three professions, the Institute has not yet received any official call from the Government, either to share our views or participate in any working group. Gold: Is 2016 going to be the year of the new Cyprus? K.I.: I don’t know if a political solution will be reached this year. However, I do believe that 2016 is going to be the year in which we will see mergers in the professional practices, in business, in legislation, in government departments… and hopefully in the country too. Given of the overall environment (from both a micro and a macro perspective) and the prospects, costs and risks entailed, I am certain that time has come pursue consolidation across the board.

| COVER STORY |

ENSURING

COMPLIANCE What it means, why itâ&#x20AC;&#x2122;s needed By Effy Pafitis | Photos by Emma Louise Charalambous

26 | GOLD | The Business Magazine of Cyprus

Market Leader in AML and Risk Solutions

WHO’S WHO

CORPORATE COMPLIANCE HAS GAINED CONSIDERABLE SIGNIFICANCE IN RECENT YEARS, INFLUENCED BY A SURGE OF REGULATORY INITIATIVES AND STANDARDS INTRODUCED IN THE WAKE OF THE GLOBAL FINANCIAL CRISIS. THIS IS PARTICULARLY TRUE OF CYPRUS. IN AN ATTEMPT TO DISCERN THE ISSUE’S IMPORTANCE AND EXPLORE HOW REGULATED ENTITIES ON THE ISLAND ENSURE THAT THEIR OPERATIONS COMPLY WITH TODAY’S COMPLEX REGULATORY REQUIREMENTS, GOLD SPOKE TO LEADING COMPLIANCE PROFESSIONALS FROM A VARIETY OF INDUSTRIES.

Market Leader in AML and Risk Solutions

(Left to Right)

Marios Skandalis Director, Compliance Division, Bank of Cyprus Andrew Demetriou Director, Ioannides Demetriou LLC Michael M. Antoniades Board Member, KPMG Michalis Loizou Compliance Officer, A. Neocleous Trust Company Ltd Eleftherios Philippou Risk & Reputation Leader, Deloitte Ltd Pantelis Christofides Partner, L. Papaphilippou & Co LLC Elias Neocleous Partner, Head, Corporate and Commercial Department, Andreas Neocleous & Co. LLC Eleana Spyris Legal Advisor/Compliance Officer, EuroLife Ltd Andreas Theodosiou Director, AMF Global Andreas Andreou Vice-Chairman, Cyprus Securities and Exchange Commission Gabriel Onisiforou Board Member, EY Cyprus

www.goldnews.com.cy | GOLD | 27

| COVER STORY |

COMPLIANCE

ORPORATE COMPLIANCE and transparency is an essential element of good governance and a strategic priority for most organizations nowadays – to keep them out of trouble, integrate sustainable approaches and to drive better business performance. The cost of unethical behaviour has never been higher – as a former USA attorney put it: “If you think compliance is expensive, try non-compliance”. In recent years the world has experienced painful collapses of banks, corporations and even countries. Positive developments in the compliance and transparency sphere aim to maintain the soundness, integrity and stability of corporations, institutions and governments and restore GSRÁHIRGI MR XLI ÁRERGMEP W]WXIQ EW E [LSPI FSXL EX E local as well as at an international level.

Our Team

ur Compliance and Risk Management Department is responsible for protecting EY from the risks that arise from its professional practice. The team works closely with all parts of the business to identify and manage EY’s risk, providing coordinated advice and assistance on independence, conflicts, compliance, regulatory, policy, security and risk management issues, as well as dealing with any queries regarding EY ethics. At a country level, our division comprises two full-time employees with responsibilities specific to internal compliance and risk management. In addition, various other professionals within the Cyprus practice are responsible for compliance functions amongst other duties. Our local division is supported as well as monitored by the regional, area and global employees that comprise the EYG compliance team. The compliance team plays a central and pivotal role in protecting EY from the risks that arise from its professional practice and its significance will continue to grow as the world business and

regulatory environment further evolves and develops. But more than ever, the team also has a crucial role to play in empowering and enabling the operations of EY as well as in driving better professional and business performance. Our role is to protect business but not to prevent it.

Cyprus

he accounting profession in Cyprus has always been at the forefront of observing, adopting and following international compliance and transparency standards and regulations. Both ICPAC and its regulated accounting firms have capable and competent professionals with a positive attitude towards observing such standards. The events of March 2013 and the economic adjustment programme that followed have brought about a new era in corporate governance and transparency in Cyprus. New laws and regulations and amendments to existing laws and regulations have been enacted and new measures, policies and procedures have been implemented. The progress in enhancing the regulatory framework in line with EU

28 | GOLD | The Business Magazine of Cyprus

“

GABRIEL ONISIFOROU Board Member, EY Cyprus

“AS A FORMER USA ATTORNEY PUT IT: ‘IF YOU THINK COMPLIANCE IS EXPENSIVE, TRY NON-COMPLIANCE’”

and best international practices is enormous. It is now the time for review; all bodies (government, other regulatory, supervisory and professional bodies, institutions and associations) should consolidate the knowledge acquired and work in a coordinated manner, taking into account the risks that Cyprus faces at national level and leveraging and cascading down the requirements and obligations to the playing field parties (corporates, financial institutions, accountants, legal, professional and other regulated or obliged entities), thus ensuring that these are proportionate and do not go beyond

what is required to achieve the aim of compliance, corporate governance and transparency.

Additional Measures

easures and actions, policies and procedures as well as enforcement sanctions should follow a risk-based approach, aiming to avoid delays and inefficiency in business – described thus by author C. Wright: “Extremes are easy. Strive for balance”. In addition, ordinary citizens must come to appreciate that they have the power to demand and impose transparency, integrity and accountability.

Market Leader in AML and Risk Solutions

Our Team

“

MARIOS SKANDALIS Director, Compliance Division, Bank of Cyprus

“TODAY, COMPLIANCE IS AN INTEGRAL PART OF ANY CORPORATION THAT WISHES TO ADHERE TO THE BASIC PRINCIPLES OF GOOD GOVERNANCE”

HE COMPLIANCE FUNCTION has gone through a tremendous transformation over the past couple of decades and the importance and need for an effective compliance function LEW VMWIR WMKRMÁGERXP] 8LI YRHIVP]MRK reasons for this transformation are, primarily, increased regulation and the scope of regulatory frameworks. However, what has really triggered public awareness of the importance of compliance over the past few years has FIIR XLI MQTSWMXMSR F] VIKYPEXSVW SJ IRSVQSYW ÁRIW SR the grounds of non-compliance. Without any doubt, this transformation has brought a lot of corporate developments to Cyprus’ business world, with more people being recruited in the area of compliance, and more people seeking technical training on fraud investigation, forensic examination, money laundering issues, etc. Today, compliance is an integral part of the strategy, organisational structure and budget of any corporation that wishes to adhere to the basic principles of good governance. As the PIEHMRK ÁRERGMEP ERH GSVTSVEXI MRWXMXYXMSR SR XLI MWPERH the Bank of Cyprus Group has compliance as the core principle behind all of its operations.

Market Leader in AML and Risk Solutions

he Bank’s Compliance Division has the responsibility for the regulatory and ethics function, the corporate governance function and the anti-money laundering function in Cyprus and overseas. Compliance has traditionally been perceived as placing operational restrictions on the way the bank wished to conduct its business. However, under the ethical framework that we have adopted, the prime role of compliance is to train all members of staff, Board members and senior management to further engage with customers and improve our quality of service, leading to higher sustainable revenues and profitability. The right compliance attitude does not restrict business; on the contrary, it enhances healthy business and builds a relationship of trust with customers. The significance and scope of regulatory compliance will definitely grow and, hopefully, we shall see the same trend applying in terms of ethical compliance too!

Cyprus

rior to our accession to the European Union, Cyprus had not extensively been exposed to international regulations and supervision, leaving accountability at a local rather than an international level and exposing our market to local risks rather than complex international ones. Following EU membership and the internationalisation of more and more Cypriot corporations, this status changed dramatically and the

Cyprus economy is currently accountable to a previously unknown wider framework of governance. Unfortunately we still have a lot to do, as the recently published 2015 Corruption Perception Index demonstrates a further deterioration of Cyprus’ ranking to 32nd place, compared to 29th in 2012. This negative development needs to be seriously considered by the Government and society in general.

Additional Measures

ll financial institutions should focus on a threetier framework to ensure that (a) adherence to the best international practices of governance and transparency is a strategic corporate objective and not just viewed as a task of the compliance function; (b) all levels of management are actively involved in implementing a corporate culture of ethics and all such efforts are orchestrated by the head the institution; and (c) an effective and transparent channel of communication is established with the Regulator and other competent authorities such as ICPAC, CySEC and the Bar Association, setting common objectives and uniformly supporting and monitoring the country’s financial services sector. Once these three objectives are achieved, all financial institutions will be freed from the unproductive burden of having to promote their compliance awareness and adherence to regulatory frameworks, and they can let their actual results do all the work!

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| COVER STORY |

COMPLIANCE

Our Team

HERE HAVE BEEN a number of scandals over the years where irresponsible and, in some cases, illegal FILEZMSYV F] FYWMRIWWIW LEW PIH XS ÁRERGMEP damage and worse for consumers. As business FIGSQIW MRGVIEWMRKP] KPSFEPMWIH ERH MRÂYIRXMEP consumers –and governments on their behalf –are concerned to ensure that the companies they deal with behave responsibly and obey the law. This is even more important in certain sectors, WYGL EW ÁRERGMEP WIVZMGIW XS [LMGL TISTPI IRXVYWX XLIMV WEZMRKW ERH ÁRERGMEP WIGYVMX] JSV XLIMV JYXYVI 8LI] [ERX XS ORS[ XLEX the companies they deal with are honest and reliable, and will deliver their part of any bargain.

“

ELIAS NEOCLEOUS

Partner, Head, Corporate & Commercial Department, Andreas Neocleous & Co. LLC

“COMPLIANCE WITH NOT JUST THE LETTER, BUT THE SPIRIT OF OUR OBLIGATIONS IS CENTRAL TO EVERYTHING WE DO”

30 | GOLD | The Business Magazine of Cyprus

ou might say that everyone in the firm is part of our compliance team. Compliance with not just the letter, but the spirit of our obligations is central to everything we do, and is part of our DNA. As a leading law firm and adviser to many businesses in Cyprus and abroad, we have specialist teams advising our clients on compliance with the regulatory regimes that apply to them. In some sectors, such as banking, insurance and other financial services, the regulatory requirements are very specialised and detailed. However, even where this is not the case, businesses are subject to a wide range of obligations regarding, for example, employment, tax and financial reporting. We advise our clients on all these issues. In addition, as a professional law firm we have our own regulatory and ethical obligations, for example regarding the prevention of money laundering, the safeguarding of clients’ funds and the responsibility for acting in their best interests. As an ISO 9001 certified firm, we also have obligations to apply the highest standards of quality in our everyday procedures. One of the main challenges for any professional is keeping up with the ever-increasing volume of new requirements and developments. Unlike other law firms, we adopted a

policy of specialisation many years ago. Our people specialise in a particular field, which enables them to keep up with changes as they occur. We have a well-established knowledge management system that helps us pool our expertise effectively.

Cyprus

or many years we have led the field in Cyprus in applying the highest international standards in every aspect of what we do, and in helping our clients do the same, and we have encouraged the authorities to weed out the people who do otherwise and harm Cyprus’s reputation as an international financial centre. Great progress has been made, particularly in the past two or three years, but there is still some way to go.

Additional Measures

here is no substitute for effective, consistent enforcement, with no exceptions. If people who breach the requirements know that they will be found out and punished, without fear or favour, they will be forced to clean up their act. If enforcement is inconsistent, people will be encouraged to believe that they can continue to get away with unacceptable behaviour.

Market Leader in AML and Risk Solutions

“

PANTELIS CHRISTOFIDES Partner, L. Papaphilippou & Co LLC

“CONTINUOUS DIALOGUE WITH THE COMPLIANCE SECTIONS OF LOCAL REGULATORS SHOULD BE ENCOURAGED REGARDING DAY-TO-DAY IMPLEMENTATION”

HE COMPOSITION AND OPERATION of corporate structures depends on the mechanics and application of multilateral treaties and bilateral agreements. Such legal instruments impose on a rolling basis, due to their continuous amendment, compliance obligations both on an intra-group and on a group clients’ basis, EW [IPP EW ÁRERGMEP WERGXMSRW JSV JEMPYVI XS GSQTP] IZIR with procedural aspects. Regulators, at national and EU level, scrutinize daily client transactions and the adequacy of related corporate governance and supervision steps. Conformity with updated international legal standards will undoubtedly lead to entry into new ÁRERGMEP QEVOIXW ERH EXXVEGX MRWXMXYXMSREP MRZIWXSVW however, local businesses should not downplay compliance costs and the time involved in this process and proceed with relevant long-term projections.

Our Team

e aim at securing daily conformity with substantive and procedural compliance obligations, whilst alleviating unnecessary obstacles to transactional closings, by

updating internal client files on a regular basis and through continuous staff training and cooperation with external advisors and international law firms. Our Compliance Division comprises seven advocates, three of whom deal with the Protection of

Market Leader in AML and Risk Solutions

Competition and Concentration Control Law as well as Personal Data Protection Legislation, two are concerned with Anti-Money Laundering (AML) legislation and two focus on the application of Cyprus Securities and Exchange Commission legislation. The importance of the compliance team’s role will be enhanced in the coming years due to the corresponding trend in international regulation and the adoption of specialist multilateral agreements. From an AML perspective, updating Clients’ and internal databases regarding the identification of Ultimate Beneficial Owners of corporate structures, in anticipation of the implementation of the European Union 4th AML Directive is just one of the current challenges the team faces. Others include advising clients on their right to claim private damages from competitors and other related enterprises for infringement of Cyprus and EU competition legal provisions under the EU Directive on Antitrust Damages, which is due to be transposed into Cyprus legal order by the end of 2016. Also, we are evaluating the impact of the Court of Justice of the European Union in the Maximillian Schrems v Data Protection Commissioner case regarding the Safe Harbour Decision, in light of the conclusion of the negotiations between the EU and the US on the introduction of an “EU-US Privacy Shield”.

Cyprus

ypriot advocates have successfully passed the interim stage between a rock (over-compliance in excess

of international legal standards and corresponding obligations) and a hard place (under-compliance due to a lack of understanding of regulatory instruments), thanks to initiatives taken by the regulators, including the Cyprus Bar Association, the Commission for the Protection of Competition, CySEC, and the Commissioner for Personal Data Protection. The increased number of Notifications of Concentrations filed before the Commission for the Protection of Competition regarding approval of transactions having a Cyprus aspect and effect, and the positive outcome of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes’ additional evaluation process in September 2015 clearly indicate that Cyprus is not only back on track but on a new financial development course.

Additional Measures

he first step would be the re-enforcement of the composition of the Republic of Cyprus teams negotiating the structure of international compliance instruments so as to reflect, as far as possible, local realities and the importance of the administrative services sector vis-à-vis the total turnover of Cyprus economy. The second facet relates to continuous dialogue with the compliance sections of local regulators, which should be encouraged regarding day-to-day implementation.

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| COVER STORY |

COMPLIANCE

CRUCIAL FACTOR in the burgeoning importance of corporate compliance and ethics worldwide VIQEMRW XLI ĀþþĆ ÁRERGMEP GVMWMW XLI IJJIGXW of which are still being felt in most parts of the world, including Cyprus. The concept of strengthening corporate compliance and transparency as a QIERW XS TVIZIRX XLI GSVVYTXMSR ERH GSRÂMGXW SJ MRXIVIWX XLEX PIH XS XLI ÁRERGMEP GVMWMW LEW KEMRIH XVEGXMSR ERH GSQTPMERGI is now considered one of the most important functions in an organisation. In the insurance industry, regulatory frameworks such as the EU Solvency II Directive have ensured that compliance is a key pillar for an effective system of corporate governance, adding requirements for the independence of the function from a company’s operational activities, and the ÁXRIWW ERH TVSFMX] SJ TIVWSRW JYPÁPPMRK XLI GSQTPMERGI VSPI 7MQMPEV VIKYPEXMSRW EGVSWW XLI ÁRERGMEP WIVZMGIW MRHYWXV] LEZI led to a rise in both dedicated, technically competent and specialist compliance personnel.

Our Team

he Compliance Department has a main objective of establishing throughout the organisation a compliance culture that will ensure not only the effective implementation of an internal control framework but better customer service at all levels. This means that all concerned, from the Board of Directors to business line personnel, know their responsibilities to ensure that the organisation is compliant not only with regulatory requirements but with best industry practices and standards. Within our company, compliance is a top priority. The fast pace of regulatory change sees compliance professionals facing the challenge of remaining one step ahead of the regulators and ensuring swift adherence to changes. An additional issue faced by our team concerns changing perceptions, so that compliance is not viewed as a burdensome process but as

a means of enhancing the success of our business operations, by ensuring greater efficiency, quality of service and maintaining customer satisfaction. The challenge is therefore to be able to strike the appropriate balance between the strict adherence of our compliance framework without the excessive complication of processes and procedures.

Cyprus

s a member of the European Union, Cyprus has national law transposing the plethora of EU directives, regulations and guidelines with regard to the insurance industry. The insurance regulatory authority in Cyprus, the Insurance Companies Control Services (ICCS), issues regulations and directions to ensure that EU-wide standards in insurance law are upheld. The regulatory framework of Cyprus is therefore of a sufficiently high standard. The supervision of the observance of such regulations is

32 | GOLD | The Business Magazine of Cyprus

undertaken by the ICCS, and through increased reporting requirements of insurance companies brought about by Solvency II and onsite audits by the ICCS, an adequate standard of compliance by the industry overall is maintained.

Additional Measures

dherence to corporate governance requirements requires that compliance starts from the top. The tone for a company’s effective control environment and culture should be set by the company’s Board of Directors and senior management. Transparency, through the adequate exchange of information between the levels of the organisation

should be encouraged, and corporate governance principles should be well documented and followed. Most importantly, making compliance the responsibility of all staff and encouraging interaction between the compliance function and all personnel allows for a more effective implementation of corporate governance requirements. Another suggestion would be for a compliance team to be comprised of people who have sufficient knowledge of the specific business operations. Such knowledge helps facilitate the effectiveness of the company’s compliance with regulatory requirements by incorporating the compliance framework into existing business processes.

“THE COMPLIANCE DEPARTMENT HAS A MAIN OBJECTIVE OF ESTABLISHING A COMPLIANCE CULTURE THROUGHOUT THE ORGANISATION.”

“

ELEANA SPYRIS 0IKEP %HZMWSV 'SQTPMERGI 3JÁGIV EuroLife Ltd

Market Leader in AML and Risk Solutions

Our Team

“

ANDREW DEMETRIOU Director, Ioannides Demetriou LLC

“I FEEL THAT THE CENTRAL BANK AND THE BANKING SECTOR IN GENERAL HAVE, IN SOME CASES GONE WAY OVER THE TOP.”

N ORDER TO DO business and to deposit funds, you need to know a client’s true identity, you need a valid address for that client, you need to be certain that the funds paid by your client emanate from legitimate sources and that his transactions are legitimate. This is not re-inventing the wheel. It is simple common sense and these were always necessities of good and prudent business practice. What has changed lately is that you have to have all the above information on record and be able to demonstrate that you have performed the necessary due diligence and compliance checks on your client.

Market Leader in AML and Risk Solutions

here are two persons in our compliance team, which will clearly play an increasingly important role as our organisation continues to grow and as the demands of the supervisory authorities increase in order to protect the community against unconscionable practices and to enforce correct tax practices. The challenges facing the team emanate from two sources: the authorities or their agents and the clients. I feel that the Central Bank and the banking sector in general have, in some cases gone way over the top. They approach the issue of compliance with the fervour of the newly converted, which is never a good thing. They should realize that they are not fooling anybody. They cannot make up for their past unforgivable (and so far unpunished) sins by over-legislating, over-enforcing and overcharging their customers. The challenges from clients are simpler to deal with. A client who does not accept the fact that we must comply with legal and regulatory requirements does not remain a client. No client is so large or so important that we will risk our reputation and compromise our quality standards or principles to retain them. If they do not respect our desire and commitment to be professional in all aspects of our business, then they do not respect who we are or what we stand for and you cannot do business with somebody who does not show and demonstrate respect to you.

Cyprus

yprus is certainly a far more transparent business

centre than it was before the events of March 2013. However, I don’t believe that it can demonstrate greater integrity or accountability than before. I have not, however, lost hope. The main reason for this optimism is because, like the majority of Cypriots, I trust and respect the Attorney-General. I see him as a man of principle who is demonstrating that he has the independence, the courage and the tenacity to bring about true accountability by bringing the perpetrators of the crimes which have contributed to the country’s economic collapse to justice. Speaking for my particular profession, I believe that there is inadequate supervision by the Cyprus Bar Association with the result that, when we enforce compliance, we are seen by some clients as being over officious in comparison to other law firms on the island. In the banking industry, if we ignore the overzealous approach of some officials, Cypriot banks and foreign banks operating in Cyprus have done an excellent job in establishing and maintaining international regulatory standards.

Additional measures

believe that company directors should pass a fit and proper person test and demonstrate at least a basic knowledge of their legal duties to the shareholders of the company and to the state and its relevant regulatory authorities in terms of compliance before they can be appointed.

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| COVER STORY |

COMPLIANCE

HE IMPORTANCE OF COMPLIANCE and transparency has grown because, as a consequence of the KPSFEP ÁRERGMEP GVMWMW XLI VIKYPEXSV] VIKMQI has become more robust and broader in scope. This, in turn, has already resulted in a shift of focus in local businesses, in order to comply with greater legislation, more regulations and internal risk policies. &] I\XIRWMSR FYWMRIWWIW ERH XLI QEVOIX [MPP FIRIÁX JVSQ the improved quality of services, which will be carried out more effectively. To this end, a quality corporate compliance programme for every business is extremely valuable and important, since it can reduce the risk to which a company is exposed. Moreover, as stakeholders require quality and transparency, organisations with a vision of the future understand that the way forward is to invest in this area. Improving compliance improves the quality of goods and services, which is really what the local market is looking for.

Our Team

omplying with regulations and acting with integrity, as well as maintaining the quality of our work, have always been top priorities and targets for KPMG. As the effectiveness of a compliance framework depends on a well-communicated code of ethics and on the active participation of all personnel, our primary objective is to ensure that each employee is aware of, and takes all necessary steps to comply with, relevant laws and regulations, as well as internal policies and procedures. To this end, we have dedicated teams that set the tone, communicate and train our staff and monitor the implementation of compliance. Compliance in a firm like KPMG implies comprehensive procedures for every level of services provided, from accepting someone as a client to the delivery of our final report. Our teams monitor compliance with our operational systems and evaluate the quality of our work.

The average number of persons in such teams is 20. The role of the Compliance Department is crucial since it is the backbone of the credibility of our organisation and it guides personnel during their day-to-day operations.

Cyprus

yprus offers a competitive modern and transparent financial and regulatory framework, comprising robust and effective anti-money laundering laws and regulations which apply all the requirements of international standards, and it is fully harmonized with EU Directives. In late 2015, Cyprus was upgraded from “non-compliant” to “largely compliant” as regards compliance with the standards of the Global Forum on transparency and exchange of information on issues of taxation. Apart from the OECD upgrade, the country has also received positive feedback from MONEYVAL, which is evidence of the island’s improved

34 | GOLD | The Business Magazine of Cyprus

“

MICHAEL M. ANTONIADES Board Member, KPMG

“IMPROVING COMPLIANCE IMPROVES THE QUALITY OF GOODS AND SERVICES, WHICH IS REALLY WHAT THE LOCAL MARKET IS LOOKING FOR”

reputation as an international business centre. We have an obligation to the coming generations not to allow previous mistakes to happen again and thereby jeopardise Cyprus’ reputation.

Additional Measures

yprus has already undertaken a number of actions in order to comply, among others, with the thirteen recommendations made in MONEYVAL’s action plan in the context of Cyprus’ request for a bailout in 2013. To this end, frequent inspections are carried out in the industry, reviewing the level of compli-

ance and making recommendations for improvement, if required. It is imperative that these specialized and targeted recommendations be adhered to and all suggested measures and actions be followed. Moreover, measures for the improvement of corporate governance were also a prerequisite under the Economic Adjustment Programme for Cyprus. Bearing in mind that Cyprus exits the Programme shortly and the review by the Troika will no longer be as rigorous, it is important that all competent local authorities monitor the implementation of such actions in order to ensure their continuous application.

Market Leader in AML and Risk Solutions

orporate compliance and transparency are highly valued by the stakeholders of any organisation nowadays. Given the increased importance and attention given to these areas by such stakeholders, regulators across the globe are constantly upgrading the relevant regulatory framework (or coming YT [MXL E RI[ SRI MR SVHIV XS MRGVIEWI GSRÁHIRGI and security. Further developments in this sphere [MPP GIVXEMRP] FIRIÁX XLI PSGEP FYWMRIWW WGIRI since Cyprus, as an international services hub, will further expand the scope of services currently provided in order meet requirements on corporate compliance and transparency.

“

ANDREAS THEODOSIOU Director, AMF Global

“REGULATORS ACROSS THE GLOBE ARE CONSTANTLY UPGRADING THE RELEVANT REGULATORY FRAMEWORK IN ORDER TO INCREASE CONFIDENCE AND SECURITY”

Market Leader in AML and Risk Solutions

Our Team

ur organisation is able to offer support through a team that specializes in corporate compliance and transparency matters by giving priority to companies’ compliance and transparency requirements. Hence, the management team of our clientele can rely on our services and enjoy peace of mind to focus on higher value issues for their organisations. We collaborate with internationally recognized firms operating in the same area and we share knowledge and resources on an ongoing basis, Moreover, our team of 10 undergoes continuous training on upcoming developments and/ or regulation. The role of the compliance team is of vital importance. I would dare to say that it is of greater importance than any other function, since all working cycles within an organisation need to receive compliance clearance. Given the constant upgrades to the relevant regulatory framework, I expect that the demand for regulatory compliance will continue to grow. The main issue faced by our team at the moment is the challenge to keep on track with all the developments currently taking place in this sphere. In order to do so, dedication and commitment are two of the most important characteristics we are searching for.

Cyprus

ySEC and the industry itself, including professional service providers, aim at all times to keep up with the EU and local regulatory requirements. Notable progress has been observed in recent years. The transparency, integrity and accountability of Cyprus as an international business centre have been strengthened further in recent years. This is particularly notable within the local industry. Internationally, the status of Cyprus has been improving, notwithstanding the fact that more work is required to convinced foreign investors of our progress.

Additional Measures

n effective and value adding measure that can be implemented locally in order to ensure adherence to corporate governance requirements is the setting up of an independent body, of which the principal objectives will be (a) the provision of an organisational framework for all bodies to which corporate governance requirements apply; (b) the monitoring of those bodies through various sub committees depending on the industry that will ensure adherence to the framework; and (c) the provision of technical support and training.

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| COVER STORY |

COMPLIANCE

HE PROCESS OF BUILDING UP a strong compliance culture in Cyprus in the last few years has been an important tool in the recovery from the reputational damage that the country WYJJIVIH MR Āþÿā 8LI LEVH [SVO MR IRLERGing compliance, in particular the implementation of strict anti- money laundering legislation and a new law governing Administrative Service Providers, has brought us tangible FIRIÁXW MR FSSWXMRK XLI GSRÁHIRGI ERH XVYWX SJ GPMIRXW 8LMW is good news for our sector and a real investment in the JYXYVI SJ ']TVYW EW E GVIHMFPI ÁRERGMEP GIRXVI FYX QSVI WXMPP needs to be done.

Our Team

he key aims of our Compliance Department are, through constant improvements to its extensive system of checks and controls, to ensure full compliance with the law and our regulatory obligations and, at the same time, to contribute to the improvement in the quality of our professional services, thus building clients’ confidence in our work and enhancing the organisation’s competitiveness. The Compliance Department comprises myself plus another member of staff and we work closely with our fellow compliance professionals at our sister firm, Andreas Neocleous & Co LLC. Our role within the organisation is strategic: by enhancing compliance we reduce risk and at the same time we help raise quality. The Compliance Officer has unrestricted access to all company information and reports directly to the Board of Directors. In view of increasing regulation, our importance within the organisation is becoming more apparent and is set to increase even further. A major issue Compliance Officers face is educating clients, colleagues and company management about the constant need to

adapt to the demands of the new regulatory environment, which is here to stay. People need to understand that, while enhanced compliance means additional cost and effort by everybody, it also implies a better quality of service to the benefit of all.

Cyprus

ince 2013, as a result of the requirements of the Troika, Cyprus has upped its game in adopting and implementing international regulatory standards. The pace of change has been fast and clearly many are not ready yet but there is no doubt that overall standards are improving. In terms of transparency, integrity, and accountability, there have been improvements in this area and these have been noted internationally. However, many problems remain. For instance, corruption is still widely prevalent. There have undoubtedly been successes such as the improvement of government finances and the implementation of regulatory changes enforced by the Troika but we have squandered the chance to introduce reforms to tackle the country’s chronic problems and

36 | GOLD | The Business Magazine of Cyprus

“

MICHALIS LOIZOU 'SQTPMERGI 3JÁGIV % 2ISGPISYW Trust Company Ltd and Chairman, AML & Compliance Affairs Committee, Cyprus Fiduciary Association

“SINCE ā %7 % 6)7908 3* 8,) TROIKA, CYPRUS HAS UPPED ITS GAME IN IMPLEMENTING INTERNATIONAL REGULATORY STANDARDS”

decisively change it for the better.

Additional Measures

orporate governance in Cyprus may be improved by the adoption of strict controls to improve accountability and transparency. For instance the number and powers of non-executive directors within the Board could be increased, though currently there is no such requirement for ASPs as there is, for

instance, in the case of CIFs. Non-execs could be provided with the power to evaluate the performance of the CEO every year. There need to be improvements in the flow of information up to the Board level and in systematically assessing performance against plans. The ethical and professional standards of directors should be raised and scrutinized. The adoption of a common Code of Conduct by all three regulatory authorities will also help.

Market Leader in AML and Risk Solutions

“

ELEFTHERIOS PHILIPPOU, Risk & Reputation Leader, Deloitte Ltd

“WE CANNOT SPEAK OF GOOD CORPORATE GOVERNANCE IF THERE ARE NO STRONG COMPLIANCE SYSTEMS IN PLACE”

Cyprus

he banking crisis in Cyprus was partly a result of the failure of the two largest systemic banks. Excessive risk, poor governance and compliance standards, and a culture that allowed or even encouraged bad practices was to blame for the largest bail-in ever undertaken in Europe. The island’s reputation was also unjustly harmed by unfounded reports of money laundering. After a report by Deloitte – Italy was conducted at the request of the Troika, it became clear that the problem was of much lesser proportions that some had claimed. Since 2013, the Directives of the various regulators (ICPAC, Central Bank, CySEC, etc.) have been successfully implemented across business sectors with special enforcement priority in

the Financial Markets sector. In terms of both transparency and integrity, I believe that the progress made is both measurable and significant. In terms of accountability, there is still ground to cover but I believe that we are on the right path and growth in the financial services sector is perhaps the best evidence that Cyprus is on the road to restoring its credibility once again a major financial services centre in the region. Without doubt, compliance, integrity and transparency, along with strong enforcement, are key success factors.

Additional Measures

orporate governance and compliance go together. We cannot speak of good corporate governance

Market Leader in AML and Risk Solutions

ITHOUT DOUBT, compliance is becoming increasingly important to banking ERH ÁRERGMEP WIVZMGIW SVKERMWEXMSRW in order to meet ever-increasing regulatory standards. If one takes a GPSWIV PSSO EX ER] QENSV ÁRERGMEP SV banking scandal, compliance failures are there for all to see. It is therefore essential for every organisation in the ÁIPH SJ ÁRERGMEP WIVZMGIW XS HIZIPST E WXVSRK GSQTPMERGI programme and a well-structured team to meet its legal and regulatory requirements. We at Deloitte have considered the importance of compliance and transparency in the new and unfolding landscape in which we operate and we have come up with a strategy to guarantee our long-term success, based on integrity, fair dealing, quality and transparency. We are investing in the future. We have also developed a range of services that can assist others to understand and comply with their regulatory and compliERGI HYXMIW IJÁGMIRXP] ERH IJJIGXMZIP] if there are no strong compliance systems in place. Strong corporate governance requires independence, expertise, Board commitment to the organisation’s strategic objectives and continuous training at Board level in areas of compliance, risk and regulation. An effective corporate compliance programme includes the following elements among others: • Identify all regulatory and internal compliance needs and efforts. • Define Objectives from an enterprise and business unit standpoint. • Understand Compliance: Everyone needs to know their roles and understand the “why” and “how” of the compliance programme. Controls need to be clearly communicated, ideally with a feedback loop so control owners can voice their insights and concerns.

• Conduct a Risk Assessment: Identify risks, probabilities, and the significance in terms of both qualitative and quantitative measures. • Align Procedures and Controls with Regulatory Framework • Tone at the top and leadership compliance • Monitoring to Assess On-Going Compliance: Build monitoring, internal audit and special reviews into the compliance programme to help ensure that controls are operating effectively. • Train, Educate and Communicate: Employees and Board Members need to understand their responsibilities with regard to compliance and educate customers, vendors and other stakeholder groups to understand its value. • Measure Results and Report to the Board: Develop a reporting dashboard to keep management groups and the Board aware of compliance measures, trends and developments.

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| COVER STORY |

COMPLIANCE

Y CORPORATE COMPLIANCE we refer to the comTERMIW JYPÁPPMRK EPP XLIMV PIKEP VIWTSRWMFMPMXMIW EW XLIWI EVI HIÁRIH MR XLI ETTPMGEFPI legal framework. Laws and regulations are designed to protect economic agents and, in the case of the provision of investment services, are there to protect the weakest element – the investing public and minority shareholders in particular. Therefore, compliance with the legislation ensures not only that the market is functioning fairly but it also enhances investor protection. The Cyprus Securities and Exchange Commission (CySEC), as the regulatory and supervisory authority of the Cypriot securities market, places the highest importance on the proper compliance of its supervised entities with the laws and regulations that govern their operation. In practice, a good compliance record enhances a company’s image and public percepXMSR ERH MQTVSZIW MRZIWXQIRX GSRÁHIRGI %X XLI IRH SJ the day, we all wish to do business with a company that always acts responsibly and within the remit of the law.

Objectives

he ultimate objective of CySEC is to ensure the fair, competitive and smooth functioning of a thriving securities market, in which investors are well protected. Investor protection and market efficiency are the opposite sides of the same coin: if there is no investor protection, there is no market efficiency. For this reason, CySEC pays particular attention to both improving the regulatory framework by promptly transposing the relevant European Directives into national law and addressing any regulatory gaps identified, thus enhancing its supervision in various ways, the latest being the creation and adoption of a risk-based supervision framework. This state-ofthe-art supervisory tool enables CySEC to enhance the capacity, efficiency and concentration of its supervisory resources and

focus on entities and areas of the market that demand greater attention. Overall, a well supervised market gives a sense of security and confidence for the industry and investors alike and provides a fertile ground for economic growth and prosperity.

Challenges

ll financial supervisors face the challenge of keeping up-to-date with market developments in a sector that is highly dynamic and fast-paced. The proliferation of new financial instruments that utilize the latest information technology systems make their supervision complex and broaden the number of available services and products that falls in the regulated sphere. CySEC also has to accommodate the need to supervise an ever-growing investment services sector. We remain

38 | GOLD | The Business Magazine of Cyprus

“

ANDREAS ANDREOU

Vice-Chairman, Cyprus Securities and Exchange Commission

“IN PRACTICE, A GOOD COMPLIANCE RECORD ENHANCES A COMPANY’S IMAGE AND PUBLIC PERCEPTION AND IMPROVES INVESTMENT CONFIDENCE”

vigilant in monitoring market changes and many times we are acting preemptively in an effort to combat potential market abuses.

Additional Measures

urther measures need to be taken to develop local adherence to corporate governance requirements. Regarding the investment service sector, I believe that a code of corporate governance applicable to CIFs would greatly enhance their structures and further improve their overall compliance and performance. Furthermore, it would be quite useful if both directors and the senior management of CIFs were obligated to participate in corporate governance training and practices in order to become eligible for appointment.

The Sector

espite the challenging financial environment of the past few years, the transferable securities market in Cyprus has exhibited great resilience. Not only did the securities sector not suffer from the investor confidence crisis of the last few years in Cyprus, the EU and the region but, on the contrary, it continues to grow. For example, the number of CIFs has increased from just 18 in 2003 to a staggering 209 today. Over the past few years, CySEC has confronted the issue of corporate governance aggressively by performing numerous investigations, some of which have become the basis of the Attorney General’s cases relating to the banking sector.

Market Leader in AML and Risk Solutions

SPECIAL PROMOTIONAL FEATURE

PRESENTS

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he increasing amount of regulation and the need for operational transparency in todayâ&#x20AC;&#x2122;s world are obliging all companies and organisations that are supervised by a regulator to devote considerable resources to ensuring that they comply with standards, laws, regulations and directives. On the following pages, 13 major Cyprus-based firms give details of their compliance systems and, in some cases, the services they provide to other companies to help them manage regulatory risk.

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contents contents contents INFOCREDIT GROUP BANK OF CYPRUS GROUP DELOITTE LIMITED EUROBANK CYPRUS EY CYPRUS FILEMINDERS LTD FOREXTIME LTD (FXTM)

40 42 44 46 48 50 52

Market Leader in AML and Risk Solutions

GLOBAL AML SERVICES LTD

INFOSCREEN (CYPRUS) LTD

MAP S.PLATIS

NATIONAL BANK OF GREECE (CYPRUS) LTD

PIRAEUS BANK (CYPRUS) LTD

TRIDENT TRUST COMPANY (CYPRUS) LTD

www.goldnews.com.cy | GOLD | 39

compliance

special promotional feature

can manually screen prospective clients against global: Sanction & Watch Lists – OFAC, EU Terror List, UN etc. Enforcement Lists – Over 1,000 enforcement, embargo and denied parties lists PEP Lists – 1,400,000 entities Adverse Media – Over 35,000 news sources THEODOROS Compliant with more KRINGOU, than 100 anti-terFOUNDER & MANAGING rorism and money DIRECTOR laundering laws, this solution has coverage of over 50 risk categories. Enhanced Due Diligence Obtain a 360° AML & Risk Assessment of your clients, associates or suppliers lobal Due Diligence investigations provide a customisable, in-depth analysis of an individual/company based on clients’ specific needs and contain international through its subsidiary ICG KYC information as well as MECOS, Infocredit Group profiles relating to sanctions provides access to high-value lists, enforcement actions, PEP intelligence, and secures its lists, court filings and adverse position as market leader in media. They also examine AML and Risk solutions as global relationships, litigation well as Training. histories, credit assessments, document authentication and Solutions for Cliother relevant information. ent Onboarding ID/Passport Authentication By applying a preventative This solution enables the verapproach, businesses can enter ification of the authenticity of new relationships with confiinternational ID/passport docdence and leverage critical busi- uments. Utilising this service ness information to mitigate can significantly enhance your their business risk and successKYC procedures and reduce fully vet third parties. the risk of identity fraud. LexisNexis WorldCompliance Online Profile Verification & Online Search Tool KYC Tool Strengthen screening with Verify online identities by comprehensive coverage – analysing digital footprints Your one-stop solution for his method verifies an Sanctions, PEPs and Adverse individual’s identity and Media credibility in real time using sing an extensive database social networks and online of over 1.8 million entiservices. Aside from improving ties with 600,000 photos, users your internal fraud prevention

INFOCREDIT GROUP

or more than 40 years, Infocredit Group has been a leading provider of commercial and credit information, offering high-quality flexible solutions for Credit Risk Management, Regulatory Compliance, Debt Recovery, Call Centre Services, Training and Consulting. With a focus on the global shift towards transparency, Infocredit Group aims to empower businesses and protect them from precarious scenarios and risky transactions. With an extensive network of strategic alliances across five continents, its client portfolio comprises companies in sectors including Banking, Telecommunications, Audit and Legal Services, Retail and Wholesale Trade as well as Credit Insurance. ith a substantial presence in the Middle East

40 | GOLD | The Business Magazine of Cyprus

processes, this solution flags high-risk profiles or transactions.

Solutions for Ongoing Monitoring& Risk-Based Approach Our solutions allow companies to simplify their obligatory requirements by closely monitoring the behaviour of their associates and keeping highrisk situations under control. Automatic AML Batch Screening Tool usinesses can automatically monitor their clients and effectively reduce AML and fraud risk through a single platform. Users can apply a risk-based approach which enables risk categorization of profiles and accelerates internal processes by performing batch processing.

AML Compliance Training Infocredit Group undertakes the creation of any course (via e-learning or classroom training) required to enhance your business operations, providing your employees with the appropriate skills to protect your company’s goodwill against harmful partnerships. Risk Management & AML Courses opular compliance courses include Anti-Money Laundering, Anti-Bribery and Corruption and ensure adherence to relevant legislation.

CONTACT INFORMATION:

Address: Philippou Hadjigeorgiou 5A, Acropolis | Nicosia 2006, Cyprus Tel: (+357) 22 398000 Fax: (+357) 22 458937 Email: enquiries@infocreditgroup.com Websites: www.infocreditgroup.com www.infocreditworld.com

www.goldnews.com.cy | GOLD | 41

compliance

special promotional feature

THIS NEW CULTURE SETS THE NEW BANK OF CYPRUS AS A BENCHMARK AMONGST THE BESTGOVERNED FINANCIAL INSTITUTIONS IN EUROPE what differentiate the Bank of Cyprus over the past THE ONLY two years in relation FINANCIAL to its history and, to INSTITUTION IN a large extent, to its CYPRUS APPROVED BY THE BUSINESS competition. INTEGRITY dministering FORUM effectively the whole aspect of the Compliance function is no longer a set of tasks for the Bank but simply its culture. It is this new culture that sets the new Bank of Cyprus as of ethics, characterized by a benchmark amongst the high standards of integrity, transparency, confidentiality best-governed financial institutions in Europe. These and regulatory compliance. governance attributes are The objectives derived from what led to a positive review this statement are exactly of the Bank of Cyprus and it is today the only financial institution in Cyprus that has been approved by, and THE MISSION obtained membership to, the OF THE GROUP Business Integrity Forum (supported by Transparency COMPLIANCE International â&#x20AC;&#x201C; Cyprus).

BANK OF CYPRUS

he new Group Compliance Division of the Bank of Cyprus comprises 43 members of staff and covers the functions of regulatory and ethics compliance, corporate governance compliance and money laundering compliance. It bears responsibility for all operations of the Group both in Cyprus and abroad and includes all Group companies, both banking and non-banking.

he whole Division is headed by a Group Director who is fully independent, reporting to the Board of Directors and the Group Chief Executive Officer and managing two departments with their respective managers and a number of heads of various functional Units. he mission statement of the new Group Compliance Division of the Bank of Cyprus is to effectively apply throughout the Group a corporate culture

42 | GOLD | The Business Magazine of Cyprus

DIVISION IS TO EFFECTIVELY APPLY A CORPORATE CULTURE OF ETHICS

CONTACT INFORMATION: Address: 51 Stasinos Street, Ayia Paraskevi 1599 Nicosia Tel: +357 22122100 Fax: +357 22378111 Webside: www.bankofcyprus.com

Member of

Supported by Transparency International - Cyprus

www.goldnews.com.cy | GOLD | 43

Our Governance, Risk and Compliance Services The right components

isk management, compliance, good governance, secure systems and controls are all key issues in the ﬁnancial services industry. The changing focus of regulation, compounded by the economic downturn of recent years, is forcing companies and organisations to act upon these issues. Companies and organisations must ensure that their compliance function has the depth of expertise required to manage all regulatory requirements within the business. Those who can demonstrate good governance and high standards of compliance are reaping the rewards. Through our deep industry compliance and regulatory knowledge, we at Deloitte can help you design, assess and transform the processes, controls, and infrastructure needed to mitigate the wide variety of speciﬁc regulatory and compliance risks your organisation faces.

Our Services Enterprise Risk Services (ERS) Our ERS practice helps clients manage risk and uncertainty, from the boardroom to the entity’s network. Deloitte professionals provide a broad array of services that allow clients around the globe to better measure, manage and control risk to enhance the reliability of systems and processes throughout their enterprise. Our mission is to help our clients and our people excel. Our three strategic risk platforms encapsulate the primary service areas where our ERS practitioners deliver services to our clients and include: Governance, Regulatory & Risk The Governance, Regulatory and Risk (GR&R) service line helps organisations and their boards address a range of enterprise-wide risks by working with them to develop sustainable compliance and risk management programs. Controls Transformation & Assurance The Controls Transformation & Assurance (CTA) service offerings focus primarily on providing clients assurance-type services focused on ﬁnancial, system, and operational internal controls. CTA services are supported by best-in-class methodologies that leverage a vast suite of tools and analytic capabilities. Cyber Risk Services The Cyber Risk Services (CRS) practice represents some of the most complex areas of risk management businesses face today. Deloitte’s Cyber Risk practice is widely acknowledged as the leading security consulting practice in the world, and is eminently qualiﬁed to help clients respond to evolving cyber a secure, and resilient manner. 44 threats | GOLD in | The Businessvigilant, Magazine of Cyprus

Service Offerings Our GR&R Regulatory and Compliance service offerings include a number of speciﬁc services designed to assist organiations anticipate and adapt to regulatory change, achieve a cost-effective balance between compliance and risk and assessing and remediating their level of compliance with the applicable Directives, Laws and Regulations such as: O MiFID II, O Basel III, O Solvency II, O Governance arrangements O Foreign Account Tax Compliance Act (FATCA) O Common Reporting Standard (CRS) Our service offerings include: O Diagnostic Assessments O Readiness Assessments O Compliance Audits O Assurance Reports O Risk Analytics O Training seminars O Support for the implementation of regulatory compliance frameworks AML Compliance Services Deloitte’s AML Compliance Team can assist organisations in assessing their compliance with applicable Laws, Directives and Guidance issued by the various Regulators with regard to Anti-Money Laundering (AML) Activities as well as implementation of AML Best Practices from around the world; Compliance services can be offered to Banks, Investment Firms, Administrative Services Providers, Accountants, Lawyers and other Professional Advisors.

Service Offerings Or service offerings cover the following areas: O Diagnostic assessments and GAP Assessment of the level of compliance of the organisation’s policies, procedures and controls, with the revised Cypriot regulatory framework with regard to AML O Design of a Risk-based Model for the assessment of AML Risk and for on-going review O Design of a Transaction Based System for Transactions Monitoring O AML Compliance Audit O Readiness Assessments and preparation for Regulatory Monitoring Visits O Delivering training seminars to an organasation’s employees with respect to AML Due Diligence Procedures O Offering educational seminars to Boards of Directors to meet their roles and responsibilities with regard to AML Other Compliance Services Other compliance services at Deloitte focus on assessing and designing the enterprise risk framework, designing an ethics framework & business code of conduct and design of an anti-corruption program. Service Offerings Performance of GAP Analysis for identiﬁcation of potential areas of non-compliance with existing policies, processes and procedures and assistance for the remediation in areas that will be identiﬁed during GAP Analysis O Conduct Risk Assessments audits and monitor the effectiveness of the risk framework and internal controls O Enhancement of the Compliance Risk Framework of Organisations in line with regulatory requirements, supervisory expectations and best practice. O Conduct any special tasks or projects as requested by the Board of Directors O Seminars, trainings and workshops O

FSI Consulting Our FSI Consulting practice helps banking clients meet and comply with specific requirements emanating through the local and European regulatory framework as well as accounting standards. Compliance and consulting services are offerred to organisations that wish to achieve outstanding levels of compliance with the applicable Directives, Regulations and IFRSs including: - Accounting standards such as IAS39 and IFRS 9 - Directives, such as arrears management and provisioning for credit losses - Other specific regulatory requirements, such as recovery planning Service Offerings O We offer a number of services specifically tailored to meet the requirements of our clients, including, gap analysis, target operating model definition and implementation support. O Providing seminars, training sessions and workshops; O Consulting on industry best practices

Our team Our team of experts within Deloitte Cyprus who cover the broad range of compliance and regulatory services consists of: Eleftherios Philippou, Partner, Risk & Reputation Leader Panicos Papamichael, Partner, Enterprise Risk Services Leader Alexis Agathocleous, Partner, Financial Services Leader Katerina Antoniou, Director, AML and Practice Protection Group Christos Zapitis, Manager, Financial Services Charalambos Pitsillos, Manager, Enterprise Risk Services

Contact Information Nicosia 24 Spyrou Kyprianou Ave, CY 1075 Nicosia Tel.: 22 360300, Fax: 22 360400 E-mail: infonicosia@deloitte.com Limassol Maximos Plaza, Tower 1, 3rd ﬂoor 213 Arch. Makarios III Avenue, CY 3030 Limassol Tel.: 25 868686, Fax: 25 868600 E-mail: infolimassol@deloitte.com Larnaca Patroclos Tower, 4th ﬂoor 41 - 43 Spyrou Kyprianou, CY 6051 Larnaca Tel.: 24 819494, Fax: 24 661222 E-mail: infolarnaca@deloitte.com www.deloitte.com/cy www.goldnews.com.cy | GOLD | 45

compliance

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times to observe the spirit as well as the letter of the law. Failure to consider the impact of its actions on its shareholders, customers, employees and the market may result in significant adverse publicity and reputational damage, even if no law has been broken. In this regard, the compliance team plays a pivotal role within THE the organisation by COMPLIANCE TEAM PLAYS safeguarding the Bank’s A PIVOTAL ROLE interests. WITHIN THE ORGANISATION hat are the major issues currently faced by your team? Ever-growing transparency between countries (FATCA, CRS, etc.), the complexity of sanctions imposed due to various geopolitical events, along with the increased scrutiny required for monitoring transactions in greater depth for the possible identification of non-compliant patterns, have led to the need for more complex monitoring tools and a greater volume of customer reviews. Also, increased requireEurobank’s Compliance funcments for regulatory reporting, tion employs almost 5% of the both in volume and detail, creBank’s staff. This demonstrates ate an additional challenge. the importance that the Bank ow would you evaluate places on Compliance, despite the observance of interthe fact that considerable effort national regulatory standards and resources are employed to in your industry here on the improve the deliverables. Our island? ultimate objective is to continu- In December 2013, Cyprus ously improve all our processes implemented the 4th AML and procedures as well as our Prevention of Money Launautomated systems, to mitigate dering and Terrorist Financing effectively and minimize the Directive, a few years ahead of compliance risk for our Bank, other European countries. We while streamlining the process consider that the regulatory so as not to hinder the Bank’s requirements imposed by the operations. Central Bank of Cyprus to be hat role does the com- on par with, if not better than, pliance team play in those of leading regulators. At the overall operations of the the same time, the emphasis Bank? given to the matter has created A bank should hold itself to a culture in the industry which, high standards when carrying in itself, acts as a control mechon business and strive at all anism.

EUROBANK CYPRUS

hy is corporate compliance and transparency deemed an ever growing area of importance? Following an effective compliance programme can assist in mitigating many of the Bank’s greatest risks; it reduces the severity of possible claims and penalties and enhances the Bank’s ability for a better performance and profitability. A strong disclosure regime that promotes real transparency is central to shareholders’ ability to exercise their ownership rights on an informed basis. hat is the ultimate objective of your organisation’s Compliance Department, and how does it go about fulfilling this?

46 | GOLD | The Business Magazine of Cyprus

hat measures would you propose be taken in order to develop local adherence to the most demanding of corporate governance requirements? Stricter monitoring of business introducers and Fiduciary Service providers by CySEC, the Cyprus Bar Association and ICPAC are leading to a uniform adherence to stricter standards. A faster legislative response to new business trends and guidelines from the relevant regulators would help towards a more uniform and timely adoption of measures by the banking and financial industry. ow do you perceive the island to be performing in terms of transparency, integrity, and accountability following its economic recovery? In our opinion, Cyprus was unfairly targeted and, as a result, the island’s reputation was affected. Despite this treatment, we believe that we have emerged stronger since all stakeholders never stopped taking measures to continuously improve our position. By implementing many new laws and regulations ahead of many countries, e.g. the 4th AML Directive and CRS, Cyprus has demonstrated the willingness to be on a list of countries that comply strictly to regulations that promote transparency.

CONTACT INFORMATION:

Address: Eurobank Cyprus Ltd, 41, Archbishop III Makarios Avenue,1065 Nicosia, Cyprus Postal Address: P.O. Box 27236, 1643 Nicosia, Cyprus Tel: (+357) 22208022 Fax: (+357) 22875405 e-mail: www.eurobank.com.cy Website: info@eurobank.com.cy

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compliance

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compliance strategy and effectiveness. ur Business Integrity and Corporate Compliance professionals will help you understand, manage and reduce your risk exposure and make your compliance program A GLOBAL more sustainable. LEADER IN ASSURANCE, TAX, Our professionals TRANSACTIONS possess extensive AND ADVISORY SERVICES sector and regulatory knowledge, as well as forensic data analytics capabilities. They put into use these multidisciplinary skills to help you identify and mitigate fraud and compliance risks, and respond robustly if out of the norm conduct occurs. e can help you by: • Identifying integrity and compliance risks closely related to your organization, taking account of international laws, regulations and internal audit, risk, and business practices compliance functions. From • Using our professionals’ a compliance perspective, it insights into the expectations is critical to think about the of regulators to inform the integration and alignment development of your Busiof compliance as it relates ness Integrity and Corpoto all risks relevant to your rateCompliance strategy and business. framework ey regulation and repu- • Understanding how cortational risks that every porate culture, geographical business should consider risks and business operations include: affect your ability to sustain • Anti-bribery/anti-corrupan effective compliance and tion ethics programme • Foreign trade and sanc• Conducting a critical astions sessment of the design and • Data privacy and data pro- operation of your current tection Business Integrity and • Antitrust and competition Corporate Compliance law framework • Fraud • Using our EY Business • Money-laundering Integrity and Corporate n addition, industryCompliance Maturity specific regulation as well model to benchmark your as geographical reach can compliance programme have a major impact on the against leading practice and

EY CYPRUS

Business Integrity and Corporate Compliance

robust compliance programme is essential for maintaining and enhancing a culture of business integrity and protecting shareholder value. Such a culture ultimately depends on businesses applying the right values to daily decisions. Driving these values through the business requires the critical support of relevant and proportionate policies, procedures and controls. At EY we are experienced in providing this support for our clients by developing and enhancing the right compliance framework tailored to the needs of their businesses. ver the past few years, organizations have focused significant effort to design their governance,

48 | GOLD | The Business Magazine of Cyprus

predefined standards • Using our insights to recommend framework enhancements, taking account of your culture, vision, and operations, as well as any relevant risks to your organization • Working with your management and compliance teams to help put in place the policies and practices best suited to reducing risk • Using forensic data analytics to interrogate and analyze complex and large data sets, to help you clarify the threats to your business and prioritize your risk management strategies • Using our forensic accounting and eDiscovery skills to detect and recover admissible evidence of noncompliance or unethical business conduct • Working with you to create continuous oversight on the performance of your Business Integrity and Corporate Compliance Programme • Providing Integrity Diligence to help you understand and reduce the potential risks of impropriety by third parties • Drawing on our global network of professionals for country and sector-specific insights into potential third-party compliance risks and accessing market-leading databases, covering over 30,000 information sources, to support your decision-making. CONTACT INFORMATION:

Address: Jean Nouvel Tower, 6, Stasinos Avenue, Nicosia, Cyprus Postal Address: P. O. Box 21656, 1511, Nicosia, Cyprus Tel: (+357) 22209999 Fax: (+357) 22209997 e-mail: ey.cyprus@cy.ey.com Website: www.ey.com

How do you achieve growth and manage fraud, bribery and corruption risks? Shareholder demands and regulator scrutiny become intense when businesses fail to protect themselves from fraud, bribery and corruption.

Find out how we can intelligently connect your business operations, markets and third-party relationships, to help you prevent, detect and respond to impropriety and protect shareholder interests: visit www.ey.com/fids.

www.goldnews.com.cy | GOLD | 49

compliance

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compliance violations, which destroy a company’s reputation and lead clients to serious problems. iven that Fileminders has grown over the last years in terms of staff numbers and the services it provides, it was particularly important to re-establish the culture needed to avoid such risks. To do so, several measures were taken by Fileminders’ Compliance ANDREAS Department, HADJIYIAKOUMIS aimed at offering HEAD OF COMPLIANCE confidentiality, integrity and availability, designed to guide policies for information security within the company. he major target of this Department is the quality assurance of the services the company provides, including securing the information management (ISO 27001) certification, following a number of quality management principles (e.g. strong customer focus, motivation and implication of top management, process approach and continual improvement) (ISO 9001) and securing a safe and healthy environment for also because of the fact that the company’s employees most organisations strive (OHSAS 180001). to improve operational Information security is excellence, organisation, a crucial element that clarity, transparency and Fileminders maintains and accountability. safeguards at all times. ileminders provides The implementation of Records Management, these measures is what Digital Solutions and Secure gives Fileminders Ltd its Destruction services. The competitive edge as the main risks in the process of these services are data theft and only outsource provider to operate through such state-

FILEMINDERS LTD

Helping Regulated Businesses Stay Compliant

or companies in highly-regulated industries, information management is a critical component of compliance. Quality and compliance requirements permeate an organisation by necessity, not only due to myriad laws, regulations, and “Good Practice” standards, but

50 | GOLD | The Business Magazine of Cyprus

INFORMATION SECURITY IS A CRUCIAL ELEMENT THAT FILEMINDERS MAINTAINS AND SAFEGUARDS AT ALL TIMES of-the-art information management facilities. Not only does the company provide customers with secure and qualitative outsource choices for the management of their data, but it also makes them compliant with national, European and international regulations and standards. This is the greatest benefit when choosing us as your information management outsource provider. Due to the fact that we constantly invest in improving the quality of services we offer, both in terms of operational efficiency and compliance to industry regulation, you do not need to waste time and resources. You simply comply through us.

CONTACT INFORMATION:

Address: P. O. Box 16237, 2087 Nicosia, Cyprus Tel: (+357) 77778666 Fax: (+357) 22833852 e-mail: PUMV'ÄSLTPUKLYZ JVT J` Website: ^^^ ÄSLTPUKLYZ JVT J`

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compliance

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hy is corporate compliance and transparency deemed an ever growing area of importance? How will positive developments in this sphere alter the local business stage as we know it? Corporate compliance and transparency are the two key factors that ensure the smooth growth of the financial industry. The overall environment and mechanisms of control must take into consideration the management’s philosophy and assignment of authority, FXTM’s organisational structure, FXTM’s policies and procedures, and performance accountability. Through effective ELEANA internal controls, as MASSOURA, HEAD OF well as active collabCOMPLIANCE oration from Senior Management, Risk Management and Internal Audit Functions, the Compliance team ensures that established policies and procedures are followed to achieve FXTM’s objectives. The ultimate goal is the provision of excellent and transparent services for clients, within the regulatory framework. Continuous positive improvements and developments will primarily assist Compliance teams to operate on common ground, boosting the industry to work more efficiently and effectively as a whole. one of the leaders in facili-

FOREXTIME LTD (FXTM)

XTM is a licensed and regulated international online forex broker, specializing in client-tailored products and services for every type of financial trader. The company has grown exponentially over the past few years to become

tating online trades, offering a range of trading accounts, excellent and competitive trading terms, attractive partnership structures, and a brand-new investment programme. Security, transparency, and client satisfaction are at the core of FXTM’s values.

52 | GOLD | The Business Magazine of Cyprus

n this context, what is the ultimate objective of your organisation’s Compliance Department, and how does it go about fulfilling this? Our Compliance Department acts in a proactive manner with respect to the

risks that may arise from the operations of FXTM. The Board and Senior Management adopts a compliance culture in FXTM and, in this respect, gives the Compliance Officer adequate authority and resources to monitor FXTM’s operations, department by department. In this way, we ensure the provision of high-quality services to clients, while always abiding by relevant legislation, which is FXTM’s ultimate objective. Through consistent communication and direct involvement with various departments within the Company, coupled with ongoing and rigorous monitoring, the Compliance Team strives to rectify any inconsistencies on a continuous basis, thereby fulfilling one of FXTM’s primary goals.

ow many persons comprise your Compliance Division? Currently, our Compliance Team comprises five members. Given the expansion of FXTM’s operations, as well as the stringent regulations that will enter into force over the following years, the Team may expand in order to effectively execute its duties.

n your estimation, what role does the compliance team play in the overall operations of the organisation? Do you expect its significance to increase as demand for regulatory compliance continues to grow? Compliance plays a crucial role in FXTM’s operations as it is a vital function in ensuring the latter’s conformity

ensuring that operations run effectively.

with relevant legislation. Employing an adequate internal control system is the basis for accomplishing FXTMâ&#x20AC;&#x2122;s operational objectives, as set by the Board and Senior Management. That is, safeguarding FXTMâ&#x20AC;&#x2122;s and the Clientsâ&#x20AC;&#x2122; assets, and assuring the correct reporting from both an accounting standpoint and a legislative one. All of these go hand-in-hand with ensuring adherence and compliance with the relevant legislation overall. Compliance will continue to play an integral part in FXTMâ&#x20AC;&#x2122;s readiness to make certain that any upcoming legislation â&#x20AC;&#x201C; such as the demanding MiFID II and MiFIR â&#x20AC;&#x201C; will enable it to continue to operate as efficiently and smoothly as it is now.

ompliance professionals face a variety of challenges specific to the industries in which they

work. What are the major issues currently faced by your team? The Compliance Team ensures that FXTM operates under responsible corporate governance, which, in turn, must ensure that the operations are always compliant with respect to applicable regulation. Moreover, given the enormous task faced by our team in establishing compliance in an ever-changing and demanding regulatory environment, another challenge that firms now face is regulatory risk. This arises mainly due to the short deadlines imposed by regulators (both local and global) with respect to new legislation.

ow would you evaluate the observance of international regulatory standards in your industry here on the island, at large? In general, we trust that the companies abide by interna-

tional regulatory standards in order to ensure that their operations run efficiently and effectively and always to the benefit of the client.

hat measures would you propose to be taken in order to develop local adherence to the most demanding of corporate governance requirements? The companies that make up the financial industry sector must ensure that the internal controls they employ are always followed, and they must make sure that prudent leadership is in place. Moreover, these companies should carry out effective risk assessments in order to mitigate any potential and/or current risks. Finally, companies should take every necessary measure to make sure that all employees of relevant departments are adequately trained and up-to-date with relevant legislation. This is key to

he challenging financial environment of the past few years â&#x20AC;&#x201C; or rather the multiple causes of this turbulence â&#x20AC;&#x201C; has called into question Cyprusâ&#x20AC;&#x2122; reputation as an international business centre. How do you perceive the island to be performing in terms of transparency, integrity, and accountability following its prudent economic recovery? The Cypriot government has taken pioneering and proactive actions and measures to smooth out the turbulence created over the past few years. The effective measures taken by the local supervisory authorities, combined with the determination to restore the countryâ&#x20AC;&#x2122;s reputation as an international business centre, have paved the road to recovery faster than expected.The values of transparency, integrity and accountability, have certainly been strengthened in the immediate aftermath of the islandâ&#x20AC;&#x2122;s financial turbulence. This has played the leading role in the countryâ&#x20AC;&#x2122;s economic recovery.

CONTACT INFORMATION:

Address: FXTM Tower, 35, Lamprou Konstantara St., Kato 7VSLTPKPH 3PTHZZVS Cyprus Tel: (+357) 25558777 Fax: (+357) 25558778 e-mail: info@forextime.com Website: O[[W! ^^^ MVYL_[PTL JVT L\

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compliance

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• FATCA (Foreign Account Tax Compliance Act) and Common Reporting Standard (CRS) Compliance by Financial Institutions It is worth noting that, in 2016, according to the 4th European Anti Money Laundering - please fix the spacing oney Laundering Directive, RAKIS CHRISTOFOROU, regulated entities MANAGING must put in place DIRECTOR a proper client risk assessment and categorization based on the risk-based approach. ithout proper internal controls, compliance policies (and AML manuals) that look perfect on paper can fail and the consequences can be substantial yet incalculable. esides financial loss, the risk of reputational damage is of primary concern to regulated entities. As a result, the need for compliance officers to stay abreast of the detrimental to a business, changing demands of the regits directors and employees. ulatory framework has never The ongoing developments been greater. It is often vital in this arena pose a considerable challenge and compa- that compliance officers are provided with robust support/ nies are required to comply, consultation and training from often across multiple jurisexperts in the AML arena in dictions. ithin 2016, regulated order to fulfil the compliance mandate and avoid facing enentities in Cyprus forcement action. will be dealing with a number of compliance related Who We Are issues including: Global AML Services Limited • More regulatory scrutiny is now in its 2nd year of operby regulators on Anti-Monations. Our constant progresey Laundering (AML) and sion and growth comes from Counter-Terrorism Financproviding AML consulting, ing (CTF) procedures guidance, training and support • Modifications to the exaccording to our clients’ needs. isting AML procedures in ur client base includes inorder to comply with the ternational banking insti4th European Anti Money tutions, administrative service Laundering Directive

GLOBAL AML SERVICES LIMITED

AML Compliance: The Only Constant is… Change

s the above title suggests, Change is the only constant featured within the regulatory environment. During the past 10 to 15 years, regulation worldwide has changed beyond recognition. The events that have led to the evolution of financial regulation include – but are not limited to – economic crises, scandals and terrorism. The consequence has been a regulatory surge, soliciting additional stringent policy measures designed to minimize the risk of such events occurring in the future. he implications of non-conformity to AML Compliance can be

W B

54 | GOLD | The Business Magazine of Cyprus

providers and multinational companies. Our successes are attributed to our varied knowledge base within our staff and the dedication to a holistic approach towards AML Compliance, which includes the highly specialized areas of FATCA, CRS and Financial Forensics. nderstanding the AML Compliance burden that is placed on companies, both at a national and international level, a group of diverse and highly qualified professionals pooled their collective knowledge and formed Global AML Services Limited, which is dedicated to offering expert advice and guidance on all matters related to compliance and more. he team is multi-disciplinary and includes ex-bankers, financial institution AML and compliance specialists, FATCA experts and financial forensic professionals. he team’s vision is simple yet effective, to safeguard clients’ business and professional integrity.

T T

Our Key Personnel Rakis Christoforou - Managing Director Socrates Parmaxis - Head of Compliance Farukh Rakhimov - Deputy Head of Compliance Marios Vrachimi - Senior AML Officer Doulla Petridou - Senior AML Officer Ioanna Nikolaou - AML Officer akis Christoforou is the Managing Director of the Company. He was the first Certified Public Accountant (CPA) in Cyprus to become Certified in Financial Forensics

DURING THE PAST 10 TO 15 YEARS, REGULATION WORLDWIDE HAS CHANGED BEYOND RECOGNITION

(CFF) and Accredited in Business Valuation (ABV). Rakis has a combined experience of more than 26 years in the accounting/ auditing and banking professions. He has performed Financial Forensic Investigations and reviewed Business Valuations on behalf of regulated authorities. e has also delivered seminars on AML/CFT, FATCA/CRS, Financial Forensics, Business Valuation and Risk Management for the Institute of Certified Public Accountants (ICPAC), the Cyprus Fiduciary Association (CFA), the Cyprus Bar Association (CBA), the Cyprus International Institute of Management (CIIM) and the University of Nicosia. Many of his articles have been published in professional magazines and websites.

Our Services At Global AML Limited we specialize in: Independent AML Internal Audits e provide truly independent AML Internal

Audits that take into consideration the latest developments in the AML Compliance arena and include the following: â&#x20AC;˘ Assessment of AML/KYC policies &procedures â&#x20AC;˘ Advice on implementing the risk-based approach & client categorization â&#x20AC;˘ Suggestions to rectify procedures to address inefficiencies â&#x20AC;˘ Continuous Monitoring and support on AML/KYC procedures Seminars and Training Programmes e provide in-house training programmes that cater to each clientâ&#x20AC;&#x2122;s specific requirements, simultaneously earning Continuous Professional Development (CPD) Units. The in-house training programmes offered are delivered by an approved Human Resources and Development Authority (HRDA) trainer and qualify for subsidization by the HRDA. (The list of programmes below is an indicative but not an exhaustive reflection of the available training topics)

â&#x20AC;˘ AML Compliance â&#x20AC;˘ FATCA/CRS /updates â&#x20AC;˘ Risk Management â&#x20AC;˘ Forensic accounting & Financial Forensic principles â&#x20AC;˘ Business Valuation FATCA/CRS Compliance inancial Institutions that fall within the scope of FATCA & CRS have to comply with specific procedures that differ from the normal KYC procedures followed. Our services in this field include the following: â&#x20AC;˘ Assessment of a companyâ&#x20AC;&#x2122;s FATCA/CRS status & classification â&#x20AC;˘ Preparation and/or review of self-certification forms â&#x20AC;˘ Assessment of a companyâ&#x20AC;&#x2122;s KYC procedures with regard to FATCA/CRS regulations â&#x20AC;˘ FATCA/CRS compliance procedures â&#x20AC;˘ FATCA/CRS reporting obligations/requirements AML Consultation, Support and Guidance e provide AML Consultation, Support and Guidance on the following

specialized areas in order to assist our clients pass regulatory scrutiny: â&#x20AC;˘ Client Screening â&#x20AC;˘ Client Assessment & Risk Categorization â&#x20AC;˘ Economic Profile Preparation â&#x20AC;˘ Client File Reviews â&#x20AC;˘ Transaction Monitoring â&#x20AC;˘ Regular Alerts on AML developments & news Financial Forensics and Valuation e provide Financial Forensic Investigations and Valuation Services to interested parties including regulatory authorities in the following subjects: â&#x20AC;˘ Financial Forensic & Financial Misstatement investigations â&#x20AC;˘ Litigation support on complicated financial matters â&#x20AC;˘ Financial Expert witness services â&#x20AC;˘ Business appraisals & Valuation Services

CONTACT INFORMATION:

Address: 227, Archbishop Makarios III Ave., 3105 Limassol, Cyprus 7VZ[HS (KKYLZZ! 7 6 )V_ 3730 Limassol, Cyprus Tel: (+357) 25050250 Fax: (+357) 25050251 e-mail: info@globalamlservices.net Website: www.globalamlservices.net

www.goldnews.com.cy | GOLD | 55

compliance

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8LI &IRIÁXW Optimise client and entity management operations Increase client billing by better tracking and monitoring chargeable work Improve compliance and the quality of your INFOSCREEN IS work AN ESTABLISHED INDEPENDENT Standardise SOFTWARE VENDOR procedures BASED IN CYPRUS WITH OFFICES and reduce IN HONG KONG opportunities AND SERBIA. for human error Implement secure and traceable operations Manage information and documents accurately, reliably and efficiently Information becomes instantly accessible and available at a touch of a button Achieve high levels of protasks such as compiling, ductivity from your staff reporting, KYC/Compliance

INFOSCREEN (CYPRUS) LTD

nfoScreen Quorum is an entity management and company secretarial software solution used by leading audit, legal and fiduciary organisations that provide corporate services in 26 countries in the Americas, EMEA and Asia. Quorum covers the full spectrum of professional service operations with the capability to connect with other systems, such as accounting packages and Microsoft Office Applications (Outlook, Word and Excel). Users can manage entities, clients and contacts, documents & workflows, and perform

checking and billing. InfoScreen Quorum provides audit trails and pushes notifications to users, enabling efficient user monitoring and client file management. At the same time, the software incorporates a highly sophisticated security permissions feature to control user access rights efficiently throughout the system. It is no understatement to say that, through InfoScreenQuorum, we manage to facilitate the completion of daily tasks for thousands of people working in top businesses around the world.

56 | GOLD | The Business Magazine of Cyprus

The KYC/ 'SQTPMERGI JIEXYVI

he KYC/Compliance functionality offers Quorum clients the necessary infrastructure for effective risk management and compliance to meet the requirements set out by the Regulators. The result is an integrated and user-friendly functionality that responds to users’ needs when they need it the most. It provides tools for Compliance Officers, enabling them to manage everyday activities, with critical information always at

their fingertips. Mountains of work once done manually can now be done in a quick and easy way.Once the KYC is enabled, the system performs in a proactive way; in other words it gives a heads-up alerts and provides a holistic view of the compliance-related image of the firm, before deadlines or critical dates approach. Extensive details of clients’ Business and Financial profile, Politically Exposed Persons (PEPs) status and periodic checklists among others, represent the building components of the continuous monitoring engine, extending the importance of KYC beyond the initial client onboarding stage. The production of parent ownership structure in a graphical way allows for a quick visual overview of all entities and individuals involved in a given corporate entity. Finally, another important factor that makes Quorum KYC an easy solution is the fact that the most of the statutory data already resides within the system through the earlier use of the Corporate module.

CONTACT INFORMATION:

Address: (N -`SH_LVZ :[ YK Floor, 3083 Limassol, Cyprus Tel: (+357) 25820789 Fax: (+357) 25820790 e-mail: sales@quorumcentral.com Website: www.quorumcentral.com

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Entity Management

Banking Administration

Tasks & :RUNćRZV

Time & Billing

Contacts & Clients

Document Management

Reporting

KYC Compliance

Integrations

+357 2582 0789 sales@quorumcentral.com www.quorumcentral.com 166 Ag. Fylaxeos Str, CY-3083, Lemesos, Cyprus www.goldnews.com.cy | GOLD | 57

compliance

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financial firms for non-compliance with provisions of the law and causing considerable reputational damage. In Europe, the upcoming implementation of MiFID II, MiFIR and other legislative acts set the regulatory standards even higher and firms run the risk YOUR PARTNER of not being able to IN FINANCIAL cope with the vast SERVICES! amount of new provisions being brought to the table. On a local level, the introduction of new supervisory frameworks by both the Central Bank of Cyprus and the Cyprus Securities and Exchange Commission, including a number of new circulars and directives, contribute to the of Lehman Brothers and fluidity of the regulatory other regulated institutions, landscape. a global push has been unAP S.Platis teams derway to ensure that such consist of high-calibre a crisis will be averted in the and seasoned consultants future. Countries all over the with in-depth knowledge world provided the legislaof the financial sector, as tive tools to the regulatory well as an understanding of authorities for increased the business and the relesupervision of the financial vant regulatory framework. sector and the European Team members stand ready Securities and Markets Auto assist Investment Firms, thority (ESMA) was set up by the European Union with Credit Institutions, Payment and Electronic Money Instithis objective in mind. tutions, UCITS Funds and t is evident that financial Management Companies firms find difficulties in and Alternative Investment keeping up to date with Funds and Fund Managers regulatory demands and the related burden, with enforce- to set up under the most appropriate structure and ment of compliance provisions by regulators becoming ensure that they are always up to speed with current even stricter. The financial and upcoming regulatory press is rife with news of demands. A solid knowledge regulators imposing fines on

MAP S.Platis

AP S.Platis, the leading financial services consultancy firm in the South-eastern Europe/ MENA regions, with years of expertise in regulatory compliance, foresaw early on the impact of increased regulatory trends and demands. As a result, it took a strategic decision to develop at the core of its business an action task force whose philosophy and mandate is assisting financial firms to create a compliance culture across all areas of operations and to devise tailor-made solutions, catering to the needs of each individual regulated entity in order to navigate the new challenging environment. Following the financial crisis of 2008 and the collapse

58 | GOLD | The Business Magazine of Cyprus

base and know-how relevant to each client group, accumulated over many years, underpins the provision of MAP S.Platisâ&#x20AC;&#x2122; services. AP S.Platis offers an array of services that include the setting up and licensing of regulated firms, ongoing and ad hoc regulatory compliance, internal audit, capital adequacy and risk management services, accounting and tax, trade reporting and tailored executive training. AP S.Platis consultants can help a financial firm identify early any possible weaknesses potentially placing it at risk of not meeting regulatory thresholds as well as present the firm with tailored rectification measures best suited to its modus operandi.Continuous support can be available, including but not limited to queries regarding upcoming regulation, organisational changes and submissions and communications with regulatory authorities across the EU and the world.

CONTACT INFORMATION:

3PTHZZVS 6É&#x2030;JLZ! (YJOIPZOVW Makarios III Avenue, Amaranton *V\Y[ YK -SVVY 4LZH .LP[VUPH 3PTHZZVS *`WY\Z Postal Address: P.O. Box 59521, 3PTHZZVS *`WY\Z Tel: (+357) 25351335 Fax: (+357) 25351330 e-mail: info@mapsplatis.com Website: www.mapsplatis.com 5PJVZPH VÉ&#x2030;JLZ! 25 Demostheni Severi Avenue 4L[YVWVSPZ ;V^LY [O -SVVY 1080 Nicosia, Cyprus

Specialised and tailored solutions for the financial services sector on International Licensing, Compliance, Risk Management, Internal Audit, Fund Administration, Anti-Money Laundering, EMIR Reporting, IT Audit, Executive Training and more, based on an unparalleled knowledge and experience of financial regulation in Europe and beyond!

Contact today the award-winning teams of MAP S.Platis, the leading and most specialised international consultants for the financial services sector, to receive more information about our unique products and services for you and your clients

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NATIONAL BANK OF GREECE (CYPRUS) LTD

n recent years, banking and other financial organisations have greatly expanded the scope and complexity of their activities. However, in the

wake of various corporate scandals, the legal and regulatory intervention in the operations of the financial sector in the broader European

60 | GOLD | The Business Magazine of Cyprus

Union area, as well as globally, is constantly increasing, leading to a growing number of local and global regulations with which organisations need to comply. The importance of compliance in preventing violations of law and unethical conduct has increased, as a compliance failure can result in very serious and sometimes devastating consequences, such

THE IMPORTANCE OF COMPLIANCE IN PREVENTING VIOLATIONS OF LAW AND UNETHICAL CONDUCT HAS INCREASED

and services, geographical locations/areas and delivery channels. he Bank has invested in automated systems that enable ongoing real-time effective and efficient customer and transaction screening, as well as in systems (in addition to relevant policies and procedures) for the continuous monitoring of transactions and the review, examination and updating of NBG (CYPRUS) LTD, customersâ&#x20AC;&#x2122; data. HAS ADOPTED t continuously THE POLICY OF THE GROUP FOR reviews existing REGULATORY policies, procedures COMPLIANCE and monitoring controls as well as establishing new ones in order to effectively implement the requirements emanating from laws and regulations. It ensures the collection of adequate information on the purpose and intended nature of business relationships and sees that the economic and business profile of high risk customers is detailed, meaningful, accurate and regularly updated. t has introduced the role of Compliance liaison officers into its International Business Units (IBUs) and in all Branches. Compliance liaison officers have day-to-day interaction and cooperation with the Compliance Division of and supervisory framework NBG (Cyprus), ensuring the and respective EU Direcimplementation of policies tives. In order to pro-actively and procedures and complimanage risks associated with ance with rules and regulacompliance with current legtions. islation and to mitigate the urthermore, cases of overarching risks arising from conflict of interest are high risk customers, NBG being managed, ensuring the (Cyprus) has established effective separation of duties effective internal procedures between the members of the and implements sound and Board, senior management effective risk management and executives as well as besystems to identify and untween them, the Bank and derstand ML/TF risks relating to its customers, products those engaging in transactions

as financial penalties, regulatory constraints, criminal/ administrative sanctions and reputational damage that can strategically affect organisations and their reliability. ational Bank of Greece (Cyprus) Ltd, a member of the NBG Group, has adopted the Policy of the Group for Regulatory Compliance in order to prevent and manage the risk stemming from non-compliance with the current regulatory

THE BANK HAS INTRODUCED THE ROLE OF COMPLIANCE LIAISON OFFICERS INTO ITS INTERNATIONAL BUSINESS UNITS (IBUS) AND IN ALL BRANCHES while observing the Bankâ&#x20AC;&#x2122;s corporate governance guidelines. uilding a compliance culture through the continuous training of employees and ensuring compliance with both local and international laws is part of the ordinary day-to-day activities of NBG (Cyprus). Having in place a clear, effective and broadly communicated compliance programme builds customersâ&#x20AC;&#x2122;, employeesâ&#x20AC;&#x2122; and other stakeholdersâ&#x20AC;&#x2122; trust and loyalty in the Bank and strengthens its identity as it shows our commitment to doing business in the right way and to the highest ethical standards.

CONTACT INFORMATION:

Address: 15, Archbishop Makarios III Ave., 1065 Nicosia, Cyprus Postal Address: P. O. Box 21191, 1597 Nicosia, Cyprus Tel: Fax: e-mail: info@nbg.com.cy Website: www.nbg.com.cy

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compliance

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obliging financial institutions to identify every individual who owns 10% or more of the equity interests in a legal entity, as opposed to 25% which is the minimum EU and US requirement. ne of the main CHRISTOFOROS innovations of LIVADIOTIS, the Fourth EU AML HEAD COMPLIANCE Directive, which is UNIT expected to change the face of traditional international banking, is the obligation of each Member State to implement a central register with information on the ultimate beneficial owner of companies and other legal entities, including trusts. This initiative was first introduced at the June 2013 G8 Conference whereby the UK announced its commitment to setting up a central registry of ultinancial institutions should mate beneficial owner inforbe looking at organizational mation. restructuring and internalishis new requirement ing compliance norms and coincides with the culture to help reduce polaunch of the Standard for tential compliance risks and Automatic Exchange of take full advantage of the Financial Account Infornew regulated environment. mation, the Common ReThese measures will transporting Standard commonly form them into pioneers known as the CRS. CRS is capable of interacting with their environment while cre- a ground-breaking initiative ating and sustaining value in developed by the OECD working with G20 countries the long-term. and in close co-operation yprus has a very strong with the EU, which calls on legal and regulatory all member states to commit framework with regards to to the automatic exchange Anti-Money Laundering of financial account infor(AML), having already mation, in order to address applied many of the rethe issue of offshore tax evaquirements of the recently sion through co-operation published Fourth EU AML Directive well before the EU among tax administrations globally. Approximately 100 implementation deadlines. countries, including most In some areas, Cyprus has major financial centres, have even stricter requirements already committed to the than other jurisdictions. For CRS. example, the requirement

PIRAEUS BANK (CYPRUS) LTD

n recent years, the financial services industry has experienced a number of significant business and regulatory challenges. It is the responsibility of each organisation to keep ahead of this ever-changing and evolving industry by viewing the compliance function not as a control function but as an integral part of the organisationâ&#x20AC;&#x2122;s business activities. anks are currently under great scrutiny, facing severe compliance risks such as risk of legal or regulatory sanctions, material financial loss, or even loss of reputation. Recent events, as well as the imposition of severe fines to major financial institutions both at home and abroad, clearly demonstrate the need to successfully evaluate and mitigate these risks. Forward-thinking fi-

62 | GOLD | The Business Magazine of Cyprus

he requirement for the central register, combined with the CRS, will effectively increase international transparency in all jurisdictions involved and is a major step towards creating a level playing field by stripping away any potential competitive edge held by some jurisdictions. yprus is uniquely positioned to leverage on these developments by attracting new high-quality international business, promoting and building on the countryâ&#x20AC;&#x2122;s existing competitive advantages. Being an EU member, Cyprus offers quality professional services and an extensive network of double tax treaties, whilst maintaining a transparently high level of compliance with international best practices and standards. n this evolving industry, safety is now a priority for international businesses. As Cyprusâ&#x20AC;&#x2122; financial stability and credibility are being restored in the eyes of the international community, it is important that compliance is not seen as a burden but, instead, as a unique opportunity. An opportunity to stay ahead of the curve by developing long-term sound corporate governance and attracting clients with global reach through industry specialisation.

CONTACT INFORMATION:

Address: 1, Spyros Kyprianou Ave., 1065 Nicosia, Cyprus Postal Address: P. O. Box 25700, 1393 Nicosia, Cyprus Tel: OV\YZ MYVT HIYVHK Fax: (+357) 22760890 e-mail: info@piraeusbank.com.cy Website: www.piraeusbank.com.cy

www.goldnews.com.cy | GOLD | 63

compliance

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ficial for Cyprus as a global financial centre. n this context, what is the ultimate objective of your organizationâ&#x20AC;&#x2122;s Compliance Department, and how does it go about fulfilling this? Our job is to ensure that we conduct our business and the business of our clients in full compliance with our local ATHENA YIALLOUROU, regulatory obligaCOMPLIANCE tions, while ensuring OFFICER that we do so in an efficient and practical manner that supports the delivery of excellent client service. n your estimation, what role does the compliance team play in the overall operations of the organization? Compliance is now a Board-level issue in financial services and the Compliance team in any business is therefore integral to the operations of the organization, working with the different elements of the business at all levels. I am those markets. In response to not sure that Compliance will these new laws, compliance become more important in fuhas become a Board level tures, since it already occupies issue across the financial such an important position, services sector, with signifibut it will certainly retain the cantly increased investment same importance that it has in compliance infrastructure now. and personnel to cope with ompliance professionals these new demands. Alface a variety of chalthough increased compliance lenges specific to the indusrequirements do place additries in which they work. tional commercial burdens What are the major issues on financial services busicurrently faced by your nesses, these requirements team? exist to ensure the long-term We face three main challenghealth of the sector. Cyprus es. Firstly, the international has adapted to these new compliance environment is international requirements evolving rapidly, so ensuring by introducing new local that you are aware of and unlegislation over the last two derstand new developments years that has significantly is a challenging task in itself. enhanced the islandâ&#x20AC;&#x2122;s comSecondly, the international pliance framework. In the regulatory environment is not long-run this will be bene-

TRIDENT TRUST COMPANY (CYPRUS) LTD

thena Yiallourou, Compliance Officer at our Cyprus office, answers questions on compliance: hy is corporate compliance and transparency deemed an ever growing area of importance? The global financial crisis that began in 2007 dramatically accelerated the development of a more integrated and sophisticated global regulatory environment. Law and policy makers around the globe introduced a number of significant new regulations to mitigate risk within the financial services industry, to ensure the smooth running of global markets and to better protect participants in

64 | GOLD | The Business Magazine of Cyprus

yet harmonized, so there can be conflicting requirements between different jurisdictions, particularly where information sharing is concerned. Thirdly, because of the amount of change that we have experienced, many clients are still catching up with what is now required of them. ow would you evaluate the observance of international regulatory standards in your industry here on the island? That is perhaps a question for our Regulator! What I can say is that we adhere to these standards very well. I do believe that greater harmonization of the regulatory framework in Cyprus would be beneficial. At the moment we have three different regulatory bodies regulating the delivering of corporate and fiduciary services in Cyprus, whereas I believe there should be one regulator for all providers. ow do you perceive Cyprus to be performing in terms of transparency, integrity, and accountability? Cyprusâ&#x20AC;&#x2122;s international reputation certainly suffered following the events leading up to the EU bailout in 2013. But I think we are well along the road to recovery now. The fundamentals of Cyprus as an international financial and commercial centre remain very strong, and itâ&#x20AC;&#x2122;s an excellent place to do business, which is why there are more than 220,000 international business entities are registered and operating out of Cyprus.

CONTACT INFORMATION:

Address: ;YPKLU[ *LU[YL 7 6 )V_ .YP]H +PNOLUP (]L 3731 Limassol, Cyprus Tel: (+357) 25820650 Fax: (+357) 25361857 e-mail: J`WY\Z'[YPKLU[[Y\Z[ JVT Website: ^^^ [YPKLU[[Y\Z[ JVT

Trusted Globally Focussed Locally For information about our services please contact: CYPRUS

Petros Livanios Trident Trust Company (Cyprus) Ltd Trident Centre 115 Griva Digeni Avenue PO Box 58184 3731 Limassol Tel +357-258-20-650 Fax +357-253-61-857 plivanios@tridenttrust.com

Leading professional advisors, financial institutions and asset managers rely on our worldwide presence and local knowledge, backed by a 37-year track record of excellence as one of the largest truly independent providers of administration services to the global financial services sector. Visit us at www.tridenttrust.com to find out more about how we can help you and your clients in Cyprus.

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providing confidence through performance www.goldnews.com.cy | GOLD | 65

| REAL ESTATE |

COMMAND

THE HORIZON Limassol is soon to welcome a revolutionary development, one set to elevate its real estate offering to stunning heights – literally. ONE, the most recent property venture undertaken by Pafilia, will tower some 170 metres over the city’s promenade and claim the impressive title of tallest seafront residential tower in the Mediterranean. The visionary development is set to establish an entirely new category of luxury living in Cyprus, offering a marriage between the sanctuary of home and the service of a hotel. ONE has been designed to offer opulence in grand proportions and residents of ONE’s 84 lavish properties will have unlimited access to innumerable enviable amenities and exclusive services at their fingertips. Elias Eliades, Managing Director of Pafilia, divulged details of the coveted project in this exclusive interview with Gold. By Effy Pafitis

66 | GOLD | The Business Magazine of Cyprus

old: ONE is set to be among the most impressive residential developments in the region, indeed soon to secure the title of highest residential seafront tower in Europe. What was the impetus behind this landmark project? Elias Eliades: Our aspiration to create a unique residential project and the vision for its potential were the driving forces behind its conception. These were followed by our excitement about the possibilities of the site’s exceptional location and our potential collaboration with a renowned multidisciplinary design team. ONE will bring this all together to redefine the skyline, and will contribute to the image and identity of Limassol. It will act as a catalyst to regenerate and stimulate further interest and investment in Cyprus. Gold: According to Pafilia, ONE will set a new standard of luxury living, offering a variety of top-class facilities, as well as exclusive services. Tell us a little about these. E.E.: Within the walls of ONE, residents will have exclusive access to exceptional amenities, facilities and service. The spa is to be a sublime haven of peace, relaxation and restorative treatments. The large pool,

voluminous sun decks, planted terraces, bar with panoramic views, state-of-the-art fitness centre and charismatic restaurant will all contribute to the sense that ONE is a world unto itself. We believe that life at ONE should be lived to the full, spending time exactly as you choose. That’s the essence of freedom and the inspiration for our personal concierge service. Each resident will have complimentary 24/7 access to our skilled team of service experts. From making travel arrangements, local recommendations and bookings, to pre-stocking kitchens, personalised shopping, sourcing and organizing, this team are there to listen, support, advise and reassure. They will also provide access to Limassol’s most in-demand restaurants, clubs and exclusive events. Gold: Why, after focusing on Paphos for so long, have you chosen Limassol as the location for your latest project? E.E.: Limassol is consistently ranked as one of the world’s leading cities for quality of life and highly regarded for its chic Riviera feel, cosmopolitan sophistication and pure Mediterranean charm. Limassol has fast become the home of choice to an ever-growing multicultural population. Nowhere in Cyprus is there a richer or more engaging mix of culture, heritage, refined taste, entertainment and places of genuine interest. Gold: This development comes at a pivotal time for Cyprus; having secured sig-

ELIAS ELIADES

ONE is already in demand and appealing to an audience of investors and luxury home owners from far and wide nificant economic recovery, the island’s real estate sector is beginning to regain ground lost during the financial crisis. In this newly optimistic market, which has continued to attract foreign investors despite its recent woes, how do you evaluate demand for ONE’s opulent residential units? E.E.: Demand is already high due to its

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| REAL ESTATE |

limited availability (only 84 apartments/duplexes and penthouses), high differentiation and the unparalleled investment opportunity which ensures an easy exit strategy and excellent appreciation. In fact ONE has exceeded sales expectations already, with a significant number of units already sold or reserved. Gold: Do you predict this to be an attractive investment opportunity for foreign nationals, Cypriots, or both? How would you best describe the demographic to which the development appeals? E.E.: We predict that all nationalities will be interested in investing in ONE due to its unique seafront location, limited availability, capital appreciation and easy exit strategy. The scarcity of this prime seafront development in the most sought-after city in the Mediterranean as well as the strategic location of Cyprus – situated at the crossroads of Europe, Africa and the Middle East – means that ONE is already in demand and appealing to an audience of investors and luxury home owners from far and wide. Gold: Cyprus is widely considered as one of the premier destinations for a healthy combination of business and pleasure. What is it about Limassol that has placed it at the heart of both the island’s business scene and leisure offering? E.E.: Business and leisure, the new and old, all blend harmoniously in Limassol where there is always something new and exciting to experience. From the major annual events to the smaller festivities held in its traditional villages, the cultural calendar is comprehensive and diverse. And as a modern country with a progressive free-market, service-based 68 | GOLD | The Business Magazine of Cyprus

ONE will introduce a new HIÁRMXMSR SJ luxury living to the Mediterranean economy boasting major business and taxation advantages, Cyprus is an increasingly desirable destination for entrepreneurs, individual private investors, families and retirees looking for a rewarding change. In both the business and leisure categories of the Knight Frank Global Lifestyle Review, Cyprus is ranked as the fifth best place in the world to relocate – the only European location in the top five besides Switzerland. Gold: How do you expect Pafilia’s ONE to add to the town’s appeal in this regard? E.E.: As an address, an asset, a city retreat and a lifestyle choice, ONE will introduce a new definition of luxury living to the Mediterranean. The monumental height of ONE alone will redefine the ultimate Limassol view. It has the greatest perspective on the city and is an altogether elevating prospect demonstrating Limassol’s appeal. Gold: You have partnered with several reputable firms for the development of ONE: Atkins is the project’s masterplanner, WKK its architect, HBA is tasked with its interior design and Burohappold its engineering. How do these high-level collaborations reinforce the prestige of

the project, thus contributing to its appeal as an investment opportunity? E.E.: Our intention was always to bring together a group of renowned and celebrated consultants with worldwide experience to deliver a groundbreaking, prestigious highrise building. Their joint objective is to provide innovative and sustainable design which has a direct impact on the end-user by adding value and new innovative design solutions to increase the appeal of the investment for our clients. The team’s success is measured in the intelligent passive design solutions which reduce energy consumption and take into account design criteria like building orientation, shape, daylight, ventilation, shading, comfort, insulation, glass specifications, equipment efficiency and water recycling amongst others. The end result is a luxurious, practical and comfortable living space with an optimum use of energy and low maintenance for the satisfaction of the people that invest here. Gold: Finally, with an estimated finalisation date of 2018, what do you hope to achieve during 2016 as regards the construction of ONE? E.E.: Having reached the end of an intensive period of design, we are ready to proceed with the construction of this unique project. The schedule of works commences as of March 2016 with the enabling works including demolitions and supporting works on the perimeter of the plot, which will allow the main works on the superstructure to follow by July 2016. During 2016 we expect to complete most excavation works and basement slabs up to ground level.

PRESENTS

WE CONGRATULATE THE WINNERS OF THE IN BUSINESS AWARDS 2015 MANAGER (IN MEMORY OF ANDY HADJICOSTIS)

BUSINESS

CONSTANTINOS NEOPHYTOU MANAGING DIRECTOR, EMERGO WEALTH

MANUFACTURING/PROCESSING

SERVICES

CORPORATE SOCIAL RESPONSIBILITY

EDITOR’S CHOICE AWARD

BEST WORKPLACE

S.M.E.

NEW PRODUCT/SERVICE

LIFETIME ACHIEVEMENT AWARD

LOUKIS PETRIDES FOUNDER COSMOS TRADING

FOREIGN-BASED CYPRIOT ENTREPRENEUR

GEORGE MOUSKAS

DIRECTOR, ZELA SHIPPING COMPANY

| WEALTH MANAGEMENT FORUM |

PRESERVING

CAPITAL THE WEALTH, BROKERAGE AND ASSET MANAGEMENT DIVISION OF BANK OF CYPRUS ORGANISED THE “WEALTH MANAGEMENT FORUM: GLOBAL MARKETS OUTLOOK 2016” ON JANUARY 20, 2016 AT THE BANK’S HEAD OFFICES IN NICOSIA. AT THE EVENT, RASHID MOHAMED, INVESTMENT SPECIALIST GLOBAL CREDIT WITH BNP PARIBAS, GAVE A BRIEF OVERVIEW OF THE MACROECONOMIC ENVIRONMENT, AS REGARDS FIXED INCOME MARKETS IN EUROPE AND NORTH AMERICA, AN ANALYSIS OF THE 2015 PERFORMANCE AND THE OUTLOOK FOR 2016, INCLUDING THE MAIN PERFORMANCE DRIVERS AND RISKS. AFTER THE EVENT HE SPOKE TO GOLD. By John Vickers

old: How would you rate 2015 in terms of opportunities for investors in fixed income markets? Rashid Mohamed: 2015 was a year marked by considerable volatility stemming from global growth concerns, diverging central bank policy and heightened issuer-specific idiosyncratic risk. While fixed income performance was a far cry from the high single digit returns seen in 2014, the year ended with positive total returns in most fixed income asset classes. Interest rates in developed markets have, for the most part, been falling for last 30 years and, consequently, investors have been able to generate capital gains in addition to capital preservation and yield generation typical of fixed income investments. Gold: Is 2016 going to be any different? R.M.: As we move into an environment where interest rates begin to point upwards, the underlying value of bonds can go down. In general, this means

it will be more difficult to preserve capital and generate gains. Having said that, low interest rates and sustained quantitative easing in Europe should continue to support European fixed income. We expect volatility to remain high in 2016; needless to say, all of our concerns from 2015 remain equally present in 2016. Excluding the Energy sector, default rates are expected to remain low and fundamentals, on the whole, remain positive. Gold: Do you see the Federal Reserve’s decision to start increasing interest rates at a gentle pace as being the model for other countries (e.g. the UK) to do the same? R.M.: While other countries, notably the UK, would like to follow suit, concerns over global growth and sustained low oil prices and low inflation will likely keep rates lower for longer.

Gold: Are bond markets going to become more attractive or will investors have to pick and choose very carefully? R.M.: We believe there is value in bonds markets, but investors will certainly have to pick and choose carefully. Avoiding the losers will become as important as, if not more important than, choosing the winners. Gold: The latest figures from China and the turbulence on the country’s stock exchange have both affected markets around the world. Is this likely to continue? R.M.: We expect structural rebalancing in China to continue to affect global markets, inciting periodic risk aversion. Needless to say, the global impact of China’s slowdown has also been exacerbated by a number of other elements including but not limited to general global growth concerns, political and geopolitical risk

WE EXPECT VOLATILITY TO REMAIN HIGH IN 2016

70 | GOLD | The Business Magazine of Cyprus

and diverging central bank policy. Gold: What would be your advice to investors who have traditionally looked to the fixed income markets for their income? R.M.: Investors will continue to have different needs and, therefore, different structural allocations to fixed income. However, going forward, investors will need to seek fixed income managers capable of providing interest rate protection and navigating potential spread widening, especially in the context of limited liquidity. Fixed income investors should seek flexible asset managers, capable of preserving capital though tactical and dynamic asset allocation. Rashid Mohamed

ECONOMIC ACTIVITY IN EMERGING

MARKETS LIKELY

TO HOLD INVESTORS’

ATTENTION IN 2016

THE “WEALTH MANAGEMENT FORUM: GLOBAL MARKETS OUTLOOK 2016” WAS ALSO ADDRESSED BY PETER VINCENT, HEAD OF ALTERNATIVE SALES, EUROPE AT FRANKLIN TEMPLETON INVESTMENTS AND PART OF THE K2 TEAM AT FRANKLIN TEMPLETON SOLUTIONS, WHICH COMPILED THE FOLLOWING 2016 OUTLOOK.

nvestors spent 2015 first worrying about Greece, then turned their attention to China growth concerns and, later in the year, focused on the United States and the likelihood of a rate hike there, which finally occurred in December. We expect similar sentiments in 2016, with a few variations. China, emerging markets and the United States will likely be the focus of attention, given current valuations and concerns over global economic and earnings growth. Economists expect developed-market GDP to grow by 2.2% in 2016, up slightly from 2.0% in 2015, and emerging-market GDP to grow by 4.6%, instead of 4.0% in 2015. That said, we expect more muted growth in 2016 than in 2015, possibly falling short of the above consensus forecasts, but we do not expect the global economy to slip into recession this year. Several leading economic indicators point to an increasingly mature business cycle, especially in the United States.

In our view, deflation fears are likely to ease in 2016 but inflation is unlikely to spike dramatically higher. Economists have forecast developed-world inflation of 1.6% in 2016, versus 0.5% in 2015. We believe the likelihood of inflation taking off is small, thanks to low growth rates, overcapacity and low demand for raw materials, especially in emerging markets. The oft-cited base effect that energy prices should have on inflation is being delayed as oil prices continued to fall in the last weeks of 2015. Therefore, we expect developed-market monetary policies to remain broadly accommodative, especially in the eurozone and Japan, and that these countries’ fiscal constraints will also be supportive. The recent oil-price slump should have a positive effect on growth in countries that are net consumers of energy, mainly the United States, Europe, Japan and most of Asia. Cheaper oil also acts as a tax cut for consumers, and the resulting increase in demand

is slowly showing up, particularly in the eurozone. Economic activity in emerging markets, especially China, is likely to hold investors’ attention in 2016. We expect the slowdown in China to continue but in a relatively controlled fashion, allowing the country to avoid a hard landing. China’s slowdown should also continue to weigh on other emerging markets, especially net commodity exporters and those countries with important supply-chain links to China. From a top-down, macro point of view, we believe that weakness in emerging markets, including China, means that risks to commodities de-

mand remain. While a sharp reversal in the US dollar could give commodity prices a temporary lift, the structural imbalances should stay in place through mid-year. Although the majority of the sharp correction in commodity prices may be behind us, we do not expect a sustained rally. And although the world is still oversupplied in oil, recent negative sentiment could lead to higher oil prices should production slip or geopolitical tensions increase only slightly. Furthermore, if global economic growth materializes as expected that should help provide a floor to metals prices.

CHEAPER OIL ACTS AS A TAX CUT FOR CONSUMERS AND THE RESULTING INCREASE IN DEMAND IS SLOWLY SHOWING UP, PARTICULARLY IN THE EUROZONE www.goldnews.com.cy | GOLD | 71

| WEALTH MANAGEMENT FORUM | Peter Vincent

GLOBAL EQUITIES We expect the performance potential of global equities to remain muted in 2016. At the end of 2015, valuations already seemed quite demanding, especially in developed markets. As growth rates remain muted, we expect volatility and uncertainty about earnings to increase. We are cautious on developed-market equities. In the United States, our main concern for the equity market is the sustainability of profit margins. Corporate profits may have peaked and earnings per share have been declining since the third quarter of 2014. Profit margins may come under pressure from nominal wage increases. At the same time, average debt-to-EBIT ratios have been rising since 2014, in part because companies have been turning to capital markets to finance buybacks, which is causing us some concern. At the same time, valuations look demanding to us. With valuations stretched and earnings growth expectations aggressive, the hurdles to markets potentially moving upward in 2016 appear to be set quite high. On a positive note, we expect the US dollar to be a smaller drag on US profits than it was in 2015, and further gains in the currency should be relatively limited as the divergence in monetary policy between the United States, the eurozone and Japan should be mostly priced in. We still have a positive outlook on European and Japanese equities, not only because of these regions’ accommodative monetary

policies and cheap currencies, but also because we consider the earnings outlook in both of them to be more positive than in the United States. In Japan, additionally, valuations as of December-end looked attractive to us on a relative basis. While valuations in Europe currently do not appear to offer a meaningful discount to the United States, the eurozone’s economic and earnings cycles are, arguably, less mature than in the United States, and this might imply higher potential for growth in earnings per share. Consumers have been benefiting from cheaper oil, which should continue to support spending. The eurozone’s leverage cycle is also lagging behind that of the United States, as corporations have only just started to re-lever. Finally, we foresee the possibility of shareholder-friendly strategies taking hold (i.e. share buybacks). In emerging markets, we remain cautious and selective. After recent price declines, equity valuations look more attractive now than for most of 2015. We fear, however, that some equity markets may be value traps. Margins look healthier in Asia than in other emerging markets. So, with Asia largely a play on the Chinese economy and with Latin America and emerging Europe and the Middle East tied to commodities, we are cautious on all these regions. However, select countries, including Mexico and India, offer interesting opportunities, in our view. GLOBAL BONDS For government bonds, the

72 | GOLD | The Business Magazine of Cyprus

non-inflationary growth we are currently seeing in the eurozone should favour duration, but we consider the risk-reward tradeoff to be poor. We believe that US Treasuries offer a more attractive risk-reward profile than European government bonds. Given our outlook for growth (mediocre) and inflation (low), and given the current level of US yields, we think that longer maturity yields in the United States are likely capped on the upside and that the US yield curve may flatten further. And with inflation breakeven levels hovering near five-year lows, the bar is set quite low for inflation protected bonds to provide modest performance potential. While central bank purchases have a direct influence on euro government bonds, we prefer to avoid core European government debt securities because of their negligible yields. Now that the European Central Bank has announced the extension of its asset purchase programme to March 2017, we consider the risk of a selloff like the one seen in April 2015 to be fairly limited for now, though we also feel the upside price potential of the region’s government bond markets is relatively limited. Australian government bonds are, we believe, an attractive alternative, given that they currently offer the highest government bond yields in the G7. The structural slowdown in China will likely extend the pressure on the Australian economy. The bias for Australian yields therefore remains downward. Recovering after recent investor concerns about

WE EXPECT THE PERFORMANCE POTENTIAL OF GLOBAL EQUITIES TO REMAIN MUTED IN 2016 high-yield retail funds, investors’ reach for yield is likely to resurface as an ongoing theme in 2016, in which case demand for higher-yielding instruments should reappear. Although global growth has been falling, it has not deteriorated to the extent where it is likely to trigger widespread defaults. We therefore believe that, on a selective basis, high-yield bonds offer attractive yields as a result of the spread widening caused by the recent turbulence in the high-yield energy sector. Pessimism on emerging-market local-currency debt seems widespread and not dissimilar to 1997–1998. Some emerging markets, especially in Asia, have been contending with excess aggregate supply and high real effective exchange rates relative to their emerging-market peers, and this may continue to put pressure on their currencies. Thus although yields look attractive to us, selectivity will be key.

PRESENTS

THE AWARDS WOULD NOT HAVE BEEN POSSIBLE WITHOUT THE INVALUABLE SUPPORT OF OUR SPONSORS

| RETIREMENT |

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EVERYONE DESERVES TO BE ABLE TO RETIRE WITH A SECURE AND ADEQUATE PENSION BUT FOR THIS TO HAPPEN, THE CORRECT ACTION NEEDS TO BE TAKEN. THE ANCORIA OCCUPATIONAL PENSION PLAN AIMS TO FILL A SERIOUS GAP, AS TASOS ANASTASI, CEO OF ANCORIA INSURANCE TELLS GOLD.

old: Given the state of the Social Insurance Fund, can people rely on it for their pension? Tasos Anastasi: In 1998, the World Bank drew up its â&#x20AC;&#x2DC;three-pillarâ&#x20AC;&#x2122; pension classification and, ever since, this has been the widely used model in most Central European countries. The first pillar is the mandatory state pension, provided in Cyprus by the Social Insurance Fund, but this only guarantees a minimum pension to cover basic needs. However, in order to maintain a reasonable standard of living after retirement, this income needs to be reinforced by an occupational pension (second pillar), which is also mandatory in many European countries, as well as an individual pension plan (third pillar). Studies have shown that, combined, these three pillars should be more or less equal to 80% of an employeeâ&#x20AC;&#x2122;s final salary. Consequently, the earlier we start contributing to the three pillars, the greater chance we have of achieving a decent retirement without having to extend our retirement age. Gold: What are the characteristics of the Ancoria Pension Plan and how does it differ from the traditional provident fund? T.A.: The Ancoria Pension Plan comes under the supervision of the Superintendent of Insurance of the Ministry of Finance and is governed by Class VII of the Insurance Law: Management of Group Pension Funds or Provident Funds. It provides the same tax benefits as the traditional provident fund, it is ideal for all

74 | GOLD | The Business Magazine of Cyprus

40%2 By Maria Pilidou | Photo by Andreas Loucaides

companies, irrespective of size or sector, and can be tailored to the needs and characteristics of the employer. Furthermore, a provident fund requires setting up a legal entity, while the establishment of the Ancoria Pension Plan is simply a contract between the employer and Ancoria. Cost issues and other obligations of provident funds, such as the preparation and submission of financial statements, are not part of the Ancoria Pension Plan, thereby making it accessible and beneficial even to small businesses. Moreover, the traditional provident fund has a single investment strategy, determined by the management committee. The Ancoria Pension Plan, in contrast, allows for a personalised investment strategy, in accordance with the individual needs and investment profile of each member. Members have access to their personal pension account via Ancoriaâ&#x20AC;&#x2122;s online platform and they may carry out transfers among Pension Funds and amend their investment strategy. Gold: What investment options are available to each member? T.A.: Members of the Ancoria Pension Plan can choose among four Pension Funds. The Ancoria Cash Pension Fund takes the lowest investment risk and invests in foreign bank deposits. The other three Pension Funds have a conservative, balanced and growth profile respectively and invest different percentages in cash, bonds, shares and alternative investments, depending on their specific investment objective. The Pension Fund prices are calculated and published weekly on our website, together with details of the Fundsâ&#x20AC;&#x2122; investments.

www.goldnews.com.cy | GOLD | 75

Opinion

LESSONS FROM GREECE

CYPRUS NEEDS AN ENTREPRENEURIAL ECOSYSTEM AND THERE IS A SURPRISINGLY SUCCESSFUL MODEL TO FOLLOW By George Theocharides

participated recently in an not only include it in his agenda as entrepreneurial educational another area of collaboration during his field trip to Athens, the discussions with the Prime Ministers of purpose of which was to Greece and Israel but also ask them for visit various organisations help and guidance. The available statisp (stakeholders) that make up tics regarding innovation and entreprethe entrepreneurial ecosystem in Greecee neurship in Cyprus are not encouragas well as successful start-ups and entre-ing. According to a recent study by EY preneurs. Given the present state of thee Cyprus (Innovation and EntrepreneurGreek economy and the problems that ship Dynamics, September 2015), Cyit has been facing for many years, my prus was one of only two member states expectations were very low. To my sur-of the European Union that exhibited prise, I discovered that Greece actually a declining innovation performance in has a well-functioning entrepreneurial 2014 (Innovation Union Scoreboard ecosystem that promotes and supports 2015), and has consequently been resiinnovation and the creation of new busiclassified downwards from “innovation nesses that are so vital for the country. ffollower” to “moderate innovator”. Our The programme included visits to ininnovation index is now well below stitutional organisations promoting thee the EU average. Another interesting creation of the entrepreneurship and statistic in this report is the percentage innovation ecosystem, accelerators and of the country’s GDP that is used for Info: Dr. George Theocharides is an co-working spaces, innovation and entrepreneurResearch and Development (R&D). For 2013, it Associate Professor of Finance at ship funding bodies, and successful start-up and stood at 0.48% (or €86.1m in real terms), which is Cyprus International Institute of Management (CIIM) and the Director spin off companies. They included TANEO, a among the lowest rates in the EU. After reading the of the MSc in Financial Services. state-sponsored, privately funded, independently full report, I came to the conclusion that although managed “fund of funds” that invests in Greek there are some individual, scattered efforts from start-up companies; PRAXI, which aims to transfer knowledge, participating stakeholders (Government, private organisations and promote innovation and entrepreneurship, and improve the comnetworks, academic institutions, etc.) the effort has to be coordipetitiveness of Greek companies by linking research institutions nated and needs greater support from the Government and the with the industry; the Corallia Clusters Initiative, established to business community. I should mention here that last year, the Cydevelop and manage innovation clusters in specific sectors and prus International Institute of Management (CIIM) joined forces regions; Egg (enter-grow-go) and IQbility, which identify, incuwith Bank of Cyprus to launch the IDEA programme (Innobate and accelerate the development of high-potential start-ups in vate-Develop-Excel-Accomplish) with the objective of identifying, Greece; and Attica Ventures and PJ Tech Catalyst, capital funds supporting, incubating and accelerating innovative start-ups with a that identify, and finance potentially global outlook. However, many more successful start-ups by acquiring an such efforts are needed if we want our equity stake in them with an exit plan young people to enter this field and WE SHOULD DRAW of 5-7 years. become entrepreneurs. Promoting LESSONS FROM THE We should draw lessons from the innovation and entrepreneurship creSET-UP OF THE GREEK ates a more competitive environment, set-up of the Greek entrepreneurial ecosystem (as well, of course, from promotes growth, creates new jobs, ENTREPRENEURIAL the Israeli one). My humble opinion and helps to increase foreign direct ECOSYSTEM is that President Anastasiades should investment (FDI) into the country.

76 | GOLD | The Business Magazine of Cyprus

SPECIAL PROMOTIONAL FEATURE

CAR+ EIGHT LEADING AUTOMOTIVE COMPANIES

IN CYPRUS PRESENT THEIR PRODUCTS, SERVICES AND LATEST MODELS CHR. KAPODISTRIAS & SONS LTD

GENERAL INSURANCE OF CYPRUS

A. I. MOTOKINISI LTD.

78 CHAR. PILAKOUTAS LTD

88 CTC AUTOMOTIVE LTD

86 94 NET-U CONSULTANTS LTD

90 GEO. PAVLIDES & ARAOUZOS

96 UNICARS

www.goldnews.com.cy | GOLD | 77

A. I. MOTOKINISI LTD

I. Motokinisi Group is a privately owned family business, established in 1993 by Alkis J. Iacovides, who is still General Director of the company. Business commenced on the 4th of February of that year, starting off as a small Porsche Dealer in Acheon Street, Nicosia, Cyprus. Today, the company officially imports and distributes the following world- renowned brands under the umbrella of A.I. Motokinisi Group: Porsche cars Porsche Drivers Selection clothing and accessories Bentley cars Harley Davidson motorcycles Harley Davidson motor-clothing and merchandise Vredestein tyres Polaris all-terrain-vehicles, Galeon yachts Completing twenty three years of business in Cyprus, the company is one of the leading representatives of some of the most luxurious brands in automotive, yachting and retail, with showrooms in both Nicosia and Limassol. Its headquarters cover an area of 4,500 square metres on Megaron Street in the Strovolos area of Nicosia. It solely represents all its brands and is committed to providing an impeccable customer experience regarding both Sales and After Sales service.

A.I. Motokinisi in Limassol In 2010, A.I. Motokinisi opened its doors

78 | GOLD | The Business Magazine of Cyprus

Marios Nicolaides, Sales Manager Porsche Limassol Showroom

in Limassol in the Ayios Athanasios area, with easy access from both the city and the highway. Interested persons can visit the specialized Porsche and Harley Davidson showrooms and have access to a variety of services.

BRANDS Porsche Porsche was one of the first brands under the A.I. Motokinisi Group. Today, it is represented in both Nicosia and Limassol

with impressive showrooms, which follow the corporate guidelines of Porsche AG. Visitors can not only see the latest arrivals up close and test drive a Porsche but they will also find all additional services regarding the sales of new and Porsche Approved Used models. As well as visiting the After Sales Department, which includes technical service by specialized technicians and a dedicated department for Porsche Genuine Parts, they can also take a look at the Porsche Driver’s Selection Clothing shop-inshop, all under one roof. Interested persons

may also have access to services such as the Porsche Travel Club and Porsche Driving Experience, which offer a wide variety of unique experiences, including driving on snow or on a racetrack abroad, so as to get to know the legendary world of Porsche.

Bentley cars A.I. Motokinisi Ltd has been a Bentley dealer and After Sales service provider for Cyprus since 2005. At the request of the customer, we can provide any special or custom order for these magnificent cars.

Harley Davidson The legendary Harley Davidson motorcycles have had a presence in Cyprus for over 25 years (since 1991) and have been represented by A.I. Motokinisi for the past ten years. A wide variety of Harley Davidson models are on display to see and are available for test drive in the showrooms. Visitors can also enjoy all services regarding Sales and After Sales service. A wide range of Harley Davidson Genuine Parts for motorcycles gives customers a unique experience for customization. Harley Davidson fashion clothing, motor-clothing, collectibles and limited edition products and original merchandise are also available. Owners also have the possibility to become members of the Harley Owners Group (H.O.G.), one of the largest motorcycle communities in the world, which offers access to a wide range of privileges and services and also organizes various events in Cyprus and abroad. Members enjoy exclusive offers on many products and services.

Polaris ATVs Polaris All Terrain Vehicles (ATVs) have proven to be a successful brand for the past 6 years of their representation in Cyprus by A.I. Motokinisi Ltd.

Vredestein A.I. Motokinisi Ltd has represented Vredestein tyres in Cyprus since 2010. The Dutch brand focuses on car, agricultural, industrial and two-wheeler tyres. For the past six years, we have offered both retail and wholesale services.

Yachts Since 2010, A.I. Motokinisi has expanded into the yachting industry, offering sales and brokerage of Galeon yachts. A.I. Motokinisiâ&#x20AC;&#x2122;s success is not only visible in Cyprus but abroad too. Porsche Center Cyprus was awarded the Porsche Service Excellence award for its After Sales Department services. This award recognizes and honors the top dealerships in the world, taking into account service processes and the overall customer experience. In 2010, Porsche Center Cyprus hosted the Porsche World Roadshow, an international event offering prospective customers a unique driving experience on the island, a first for Cyprus. Another significant fact from the Cyprus car market is that the Porsche brand was number one in sales in the category of 2500cc and up for new cars for 2015. It is worth mentioning that the smallest Porsche engine is 2700cc, making Porsche Center Cyprus number one in this exclusive category of luxury sports cars. In 2015, Harley Davidson Cyprus celebrated its 25th anniversary but not only that: it was the first time that it had taken part in â&#x20AC;&#x153;Battle of the Kingsâ&#x20AC;?, the pan-European motorcycle customization competition. With the Cyprus entry â&#x20AC;&#x153;Revolution Xâ&#x20AC;?, Harley Davidson Center Cyprus won 2nd

Porsche Sales Team Limassol

place among 150 entries in the final at the â&#x20AC;&#x153;Wheels and Wavesâ&#x20AC;? festival in Biarritz, France. We look forward to the future with the knowledge of how to grow our business. We are committed to giving our customers the greatest possible attention and care in all aspects and to creating a connection in the workplace, with a shared passion for our vision and goals.

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CHAR. PILAKOUTAS LTD

verything started in 1932 when Charalambos Pilakoutas established a garage and showroom for imported Hillman and Humber saloons and Commer heavy trucks. From the beginning, the companyâ&#x20AC;&#x2122;s founder had a vision to develop and expand car-related activities. In 1952, Charalambos Pilakoutas Ltd became the exclusive agent of the world famous Perkins Diesel Engines. During the same period, the company was appointed agent of Trojan vans and Nuffield tractors and expanded its activities to include importing and servicing diesel engines, a field in which the company became a pioneer. Two years later, the company was appointed as agent of Thorn Appliances Ltd, the manufacturer of Thorn washing machines. A landmark year was 1958, when Charalambos Pilakoutas Ltd became the exclusive agent for Cyprus of the renowned Bavarian automobile manufacturer BMW. With BMW as its new flagship, the company embarked on a era of reorganisation and expansion, which

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Charalambos Pilakoutas, Managing director

culminated in its present dominant position. Further diversification followed as the company added more names of international repute to its list of business relationships. These included the agencies of Rolls Royce Diesel Engines, Bedford Trucks, Muddy Fox Mountain Bicycles, Borg-Warner Marine Transmissions, F.G. Wilson Gen Sets, Kubota Engines, Hurth Marine Transmissions and others in the diesel engine business. Another significant development came in 1969, when the company was appointed as general agent of KHD Deutz in Cyprus. Over the following two decades, Char. Pilakoutas Ltd continued to grow. From 1975 to 1990, company Chairman Kodros Pilakoutas successfully undertook similar business activities in the United Arab Emirates where he was the first to introduce and establish BMW and Rover cars. Another confirmation of the companyâ&#x20AC;&#x2122;s leading position in the Cyprus market was the appointment of Char. Pilakoutas Ltd. as the new general agent of the pres-

tigious Rover Group (Rover, Land Rover, MG Cars) in 1995. MINI, the renowned British Brand joined the family in 2001, enriching the Groupâ&#x20AC;&#x2122;s portfolio. Further substantiation of the Groupâ&#x20AC;&#x2122;s importance in the Cypriot automotive market was the collaboration with another British Brand, Jaguar. The Group became Exclusive Agent of the prestigious marque in 2004. Soon, in 2006, Nissan became an important part of the Group, further strengthening its position on the island. Confirming the Groupâ&#x20AC;&#x2122;s dominant position was the agreement in 2007 with Rolls Royce and Alpina. CONTACT DETAILS &KDU 3LODNRXWDV /WG $GGUHVV 0HWHRUD 6W 6WURYRORV ,QGXVWULDO $UHD 1LFRVLD &\SUXV 3RVWDO $GGUHVV 3 2 %R[ 3RVWDO &RGH 1LFRVLD &\SUXV 7HO )D[ H PDLO LQIR#SLODNRXWDVJURXS FRP F\ :HEVLWH ZZZ SLODNRXWDVJURXS FRP F\

THE ALL NEW BMW X1

BMW should be fun to drive, and the X1 fulfills that mandate with a gutsy motor, quick steering, and agile handling. The original BMW X1 built up a loyal following especially in Europe, so you’d expect BMW not to change the recipe too much but you’d be wrong, as the new second-generation X1 started with a clean sheet of paper. The styling is now more in step with BMW’s other SUVs, and ditches the pumpedup estate-car looks of the old version. It’s taller and gets a longer wheelbase, which allows the new car to be much more spacious inside than its predecessor. Starting price on this newcomer is €26,500. Moreover, out goes the old rear-wheeldrive platform and in comes BMW’s new front-wheel-drive layout, shared with the 2 Series Active Tourer MPV. On the go, the X1 is a strong little devil. It’s available with a range of 2.0-litre petrol or diesel engines and even the cheapest version has 148bhp and lots of torque. That’s the 18d; upgrade to the 20d and you get 187bhp. The top-spec diesel, the 25d, is hot hatch-quick. Τhe X1 petrol engine range begins from the 18i with the three cylinder engine of

1499cc producing 136bhp and goes on with the 20i, with 1997cc and 189bhp. BMW’s excellent eight-speed automatic gearbox is standard for the 20i and optional for other models – it does nothing to blunt performance. Inside, it talks you out. Real BMW awesomeness with high quality materials. The most obvious is that driver and passengers enjoy an outstanding all-round view, which simultaneously brings added safety in road traffic. In combination with large window surfaces and the optional Panorama glass roof, the elevated view creates a pleasantly generous sense of spaciousness. Meanwhile let’s talk about luggage space. There are 505 litres available in the boot – a considerable 85 litres more than any rival. This expands to 1,550 litres when the rear seats are folded flat. Premium compact SUVs don’t get much better than the X1. It scores highly for quality, practicality and fun so don’t miss out.

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JAGUAR XF

istinctively Jaguar, the all-new XF model is an exceptional combination of refinement, dynamics and design. This luxury sedan delivers excitement, composure and comfort, all enhanced with the latest technologies that keep you connected and entertained. Jaguar has taken the elements that make the smaller XE compact exec saloon so great and upscaled them for this new Jaguar XF four-door, improving on its predecessor with better rear seat access and more space once you’re inside. Sharp styling, a strong range of engines and an engaging chassis mean the XF is right at the top of its class. It’s another hit from Jaguar. The aluminium chassis serves up agile handling and decent efficiency with the new range of engines under the bonnet helping with the latter. Thanks to the aluminium underpinnings, the XF is relatively light compared to its rivals, which helps the way it rides and handles. The suspension keeps the body tied down nicely during cornering, so there’s plenty of composure – but there’s also lots of comfort on offer, as the XF boasts that typically plush ride quality that big Jags have always

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possessed. Show the XF a twisty road and the fast steering helps the chassis devour bends. As many XF buyers will be business users, CO2 emissions are vitally important in this sector, which is why Jaguar has opted to go almost exclusively for diesel in the latest engine line-up. It makes motorway journeys effortless, while with steering wheelmounted paddles as standard, there’s a nice element of driver involvement. Modern design, plenty of tech and extra space make the XF a great place to sit out a long journey. As with the exterior styling, the XF borrows many of its design cues inside the cabin from its smaller sibling, the XE. As soon as you open the door and lower yourself into the plush leather seat, it’s clear that Jaguar’s interiors have moved on to the next generation with its new tranche of cars. The eight-inch widescreen infotainment system sits in the middle of the dash, and with sharper graphics it’s a big improvement on the previous XF’s multimedia setup. Starting price is €38,900.

LAND ROVER DISCOVERY SPORT

he 2016 Discovery Sport takes most of Land Rover’s rugged, go-anywhere ability set and makes it part of an attractive, well-designed crossover wagon that suburban families are going to be happy with every single day of the year. Inside, the Discovery Sport is unexpectedly serious and businesslike at first glance –with the horizontal dash and vertical centre stack laid in with the stiffness of a T-square. But what might seem a little too stark and simple soon shows itself to be refreshingly straightforward and an elegant contrast to the soft, contemporary exterior. The Discovery Sport never feels less than composed and agile. The steering is fast and precise, helping you place the car with confidence. And while the low speed ride feels nice, the Land Rover becomes more comfortable at speed, where road and wind noise remain well suppressed. Like the Range Rover Evoque, the Discovery Sport depends on turbocharging for its power. The initial powertrain

combination for the Discovery Sport is a 240-hp, 2.0-litre turbocharged four-cylinder with direct injection for efficiency, balance shafts for smoothness, and a paddle-shifted nine-speed automatic companion for gas mileage. The nine-speed can launch in second gear for smoothness, or first gear when acceleration demands it. It’s capable of skipping gears for more efficient shifting. The dapper looks of the Discovery Sport conceal its serious off-road credentials, which set it apart from its more on-road-oriented rivals. A 240-hp 2.0-litre turbo four-cylinder, a nine-speed automatic, and standard all-wheel drive promise efficient all-weather performance. A four-mode Terrain Response system helps it adapt to a variety of situations – sand, snow, rocks, or mud. Seating for seven in a luxury-lined cabin means the whole family can tag along in comfort on adventures big or small. And the best of all, it comes with the starting price of €27,900.

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MINI CLUBMAN

or the debut of the 2016 Cooper Clubman, Mini has conjured up a new identity that it hopes will extend across the brand and resonate with buyers: the cool uncle. The way Mini spins it, every family has one member that is unlike the others, a worldly type on the fringe who follows his own path and radiates an undeniable sense of distinction. Mini wants to be that uncle, and it’s starting with the Clubman. More like a “Maxi” than a Mini, the Clubman is longer and wider than either its Countryman or Hardtop 4-Door siblings. An upscale interior emphasizes its intentions, with snazzy ambient lighting and optional leather interiors. With the new redesign cargo room, the Clubman offers real utility in a unique package. Producing 134 horsepower and 162 lb-ft of torque, the 1.5-litre turbo three-cylinder is nothing if not consistent. Full grunt comes on at 1,250 rpm and basically maintains turbine-like pull to its 6,500rpm redline. Thus, it’s definitely willing and encourages you to exploit everything

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it has to offer. Running through the gears with the manual is a delightful process, the shifter offering medium to short throws and intuitive action. Steep grades require skipping down a gear or three, which highlights the light action of the clutch. Overall, Mini did a fine job stepping into the compact family segment. The Clubman feels like a quality item and turns out to be a much more useable daily driver than we expected. Those extra inches were put right where they count, yet the Clubman projects the same image as any other Mini would, showing the world that you’re still cool despite those kids slowing you down. Starting price for the cool uncle is €22,400.

NISSAN QASHQAI

he new Qashqai is better made, more refined and nicer to live with. The second-generation crossover MPV from Nissan looks like a 4x4 but has the drivability and running costs of a car. It’s lighter by about 40kg, despite having grown and acquired more equipment, and the deficient rear seat space has been remedied. The engine range is all about quietness and economy. There are two petrols and two diesels but they top out at 130bhp (diesel) and 150bhp (petrol). The 1.6 dCi has a CVT auto called Xtronic, which generally operates in a stepped mode. It manages to avoid the outboard-motor sound-effects of other CVTs while retaining their smoothness. There’s also a neat new brake function so when you hit, say, a big pothole it will dab one or two brakes to help cancel out the pitch. The ride is good for a tallish crossover and there’s also been a worthwhile cut in road noise. Inside, Nissan’s pensioned off the hard plastic dash, with its tiny sat nav

and stark look, and it’s all the more appealing as a result. The front seats are excellent. The extra size makes it more of a family car, as it’s remedied the deficient rear seat space. The boot’s

better too, and most versions get a clever system of boards to divide it up and stop your eggs getting thrown about on the way home from the shops. Starting price is €17,900.

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CHR. KAPODISTRIAS & SONS LTD

hr. Kapodistrias & Sons Ltd is the largest automotive parts company in Cyprus. Better known in the market as Kapodistrias Automotive Parts, the company offers the largest range of premium-quality car parts in the market, such as filters, brakes, belts, spark plugs, and parts for vehicle service, as well as parts for steering & suspension and the cooling system, tyres, batteries, lubricants, garage equipment, diagnostic devices, mechanicsâ&#x20AC;&#x2122; tools and much more. The range of parts covers all European and Asian cars, both passenger and commercial. The company deals only in new parts, supplying genuine parts, original-equipment manufacturer (OEM) quality parts, as well as excellent quality aftermarket parts. Founded in 1969 by the late Christophoros Kapodistrias, Chr. Kapodistrias

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& Sons Ltd is today the market leader with 7 stores in Cyprus. The companyâ&#x20AC;&#x2122;s headquarters are located in Nicosia, at the same premises as its central store. Other outlets are located in Strovolos, Larnaca, Limassol, Paphos, Paralimni and Alambra. The company continues to grow steadily and today employs more than 190 people. The joint CEOs are Constantinos Kapodistrias and Marios Kapodistrias. In May 2011, Kapodistrias became a member and shareholder of the European Group TEMOT International a leading, strategic organisation and futureoriented partner for the automo-

tive aftermarket industry. TEMOT International shareholders are made up of the leading automotive aftermarket companies in Europe and the world, as the group is now expanding globally. In June 2011, the company opened a Training & Technical Centre in Nicosia, which deals with Robert Bosch technology, as well as diagnostic and technical equipment for garages. Kapodistrias is the main partner of Robert Bosch in Cyprus in the automotive sector, organizing many seminars and trainings which take place at the state-of-the-art Bosch Training Centre. In 2012, the company opened a tyre division and, with its main brand, Sailun, and other brands, Kapodistrias very rapidly became one of the biggest players in the local tyre business.

In 2014, a Lubricants division was also opened, dealing with the distribution of Castrol lubricants in the Cyprus aftermarket. In 2015, the company decided to enter the tool business with the German brand KS Tools, operating a separate division distributing mechanicsâ&#x20AC;&#x2122; tools to Cypriot garages. As a result, a new Tools & Lubricants Centre was recently inaugurated in Nicosia to house both the Tools and Lubricant divisions. This really impressive and innovative facility brings together the experience and expertise of KS Tools Germany as well as BP â&#x20AC;&#x201C; producers of the world renowned Castrol lubricants â&#x20AC;&#x201C; and functions as a showroom and distribution centre for the companiesâ&#x20AC;&#x2122; products. This is only the 5th

such facility worldwide for KS Tools and an innovative initiative for the promotion of Castrol products in Cyprus. Kapodistrias organises the biennial Autofix Show, an in-house exhibition of automotive parts, tyres, tools and garage equipment, which is attended by thousands of visitors.

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GENERAL INSURANCE OF CYPRUS

THE â&#x20AC;&#x153;GENIKES MOBILEâ&#x20AC;? APP CAN LOCATE YOU WHEREVER YOU ARE!

eneral Insurance of Cyprus is offering a new and innovative service. With the new Genikes Mobile App, which is available completely free of charge, roadside assistance will be by your side at the touch of a button! Recognizing the stress and anxiety suffered by motorists as a result of breakdowns or accidents, General Insurance of Cyprus is simplifying the process and providing a sense of security, because whatever happens, wherever it happens, General Insurance of Cyprus will make

90 | GOLD | The Business Magazine of Cyprus

sure roadside assistance is notified immediately. Using GPS tracking, the Genikes Mobile App can identify exactly where your vehicle is located. So, in case of an accident or the need for roadside assistance, Genikes Mobile will locate your position via GPS and the service providers with whom GIC cooperates will reach you, wherever you are. The Genikes Mobile App also provides the following information: â&#x20AC;˘ A list of the locations of General Insurance of Cyprus offices / branches as well as Bank of Cyprus ATMs â&#x20AC;˘ Emergency telephone numbers (Emergency, Fire, Police, etc.) â&#x20AC;˘ Details on General Insurance of Cyprus products â&#x20AC;˘ Frequently asked questions â&#x20AC;˘ Making insurance payments (through JCC) The Genikes Mobile is available free of charge via App Store and Google Play for i-Phone and Android smart-phones. The accident and breakdown services are available only to vehicles insured with General Insurance of Cyprus.

USING GPS TRACKING, THE GENIKES MOBILE APP CAN IDENTIFY EXACTLY WHERE YOUR VEHICLE IS LOCATED

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GEO. PAVLIDES & ARAOUZOS

n importer and distributor of motor vehicles since 1929, Geo. Pavlides & Araouzos today represents Opel, Citroen, Mazda and Subaru and has authorized Workshops and Bodyshops run by trained and highly-qualified technicians to provide professional services. Geo. Pavlides & Araouzos was the first company in the Cyprus Automotive industry to introduce a Reward Scheme for its customers. The benefits of the â&#x20AC;&#x2DC;Drive FOR MOREâ&#x20AC;&#x2122; Reward Scheme apply to purchases for service, mechanical repairs, body repairs and spare parts at the companyâ&#x20AC;&#x2122;s workshops. It is constantly seeking ways to improve every aspect of the customer experience. That is why it offers its customers roadside and accident assistance service at no extra cost, as well as car insurance, corporate rentals and leasing and short term rental services.

Brand Portfolio and New Models Opel

The Opel Astra has just arrived and is now in Geo. Pavlides & Araouzos showrooms. The model is nothing less than a quantum leap for the compact class in terms of efficiency, connectivity and premium features, packed in a new, athletic design.Entirely created from a white sheet of paper, the lightweight-design Astra is powered exclusively

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by newest-generation engines. It features numerous safety and assistance systems that are unrivalled or even make their premiere in this class.

Citroen

The C4 Cactus is a unique car for more everyday adventures. It features a trendy and functional design with Airbump technology, a user-friendly interior with sofa-style front seats, useful technology for well-being with a 100% digital driving interface which is 100% intuitive, and BlueHDi or PureTech engines combining pleasure and efficiency.

Mazda

A new driving experience is here! The Allnew Mazda CX-3, a crossover that combines bold, stylish and vibrant KODO Soul of Motion with comfort and practicality to suit a busy lifestyle. Award-winning SKYACTIV Technology delivers an uncompromising sporty performance and dynamic, responsive handling, making the all-new Mazda CX-3 perfect for negotiating narrow inner-city roads or touring the countryside. The all-new Mazda MX-5 is waiting for you in Geo. Pavlides & Araouzos showrooms. It is the latest embodiment of the worldâ&#x20AC;&#x2122;s bestselling roadster with all the spirit, style and masterful engineering it is famous for.

Fresh from the ground up, the all-new Mazda MX-5 comes with perfect 50:50 weight distribution and a body over 100kg lighter, which guarantees a breathtaking drive, no matter where you go.

Subaru

In a world that is constantly changing, â&#x20AC;&#x153;Confidence in Motionâ&#x20AC;? expresses Subaruâ&#x20AC;&#x2122;s resolve to face the challenges ahead. Over the past 50 years, Subaru has earned a reputation for engineering excellence and for delivering enjoyment and peace of mind through its proprietary technologies such as the SUBARU BOXER and Symmetrical AWD. The Subaru XV and Forester are gifted at inspiring confidence behind the wheel, thanks to the inherently stable design of Symmetrical AWD paired with the uniquely balanced SUBARU BOXER engine.

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NET-U CONSULTANTS LTD

etU is a leading Information Technology solutions and services organisation in the Eastern Mediterranean. With a presence in Cyprus, Greece and Serbia, NetU is recognized as a major Integrator in the region and has developed strong local and international activity. As a trusted IT business partner to medium and large organizations in the Private and Public sectors, NetU provides world-class IT solutions in the areas of Systems Integration, Business Solutions, Technology Solutions and Professional Services.

NetU and Incadea With many years of experience in the automotive industry, NetU has succeeded in establishing Incadea as the No. 1 Dealership Management Software (DMS) provider in the island. Incadea is a leading provider of enterprise software solutions and services to the global automotive retail and wholesale market. With a presence in 90+ countries, Incadea serves a growing community of approximately 85,000 end users across the globe, and supports more than 3,500 dealerships of market-leading car manufacturers. With more than 400 end users and serving more than 25 car manufacturers in Cyprus, NetU is recognized for its automotive industry expertise, providing its customers with the flexibility and scala-

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bility they need to grow their companies and maximise their performance by optimizing their most important resources. This in-depth experience allows NetU and Incadea to encompass all the business processes of various car dealerships in a standardized, repeatable approach that can be successful for any importer or dealer with minimal customization. With Incadea solutions, NetU can help its customers to: Â&#x2DC; Focus their efforts on their customersâ&#x20AC;&#x2122; increasing demands. Understand their customers better and easily manage key CRM processes. Â&#x2DC; Increase their revenue with a simplified Sales Cycle and boost their Marketing effectiveness by reducing non value-add activities in their sales process. Â&#x2DC; Increase profit margins by having a complete Vehicle Inventory Management system, reducing their vehicle inventory with consistent and concurrent cost information. Â&#x2DC; Drive results in every area of their dealership business by increasing employee performance and efficiency in optimizing their service asset utilization. Â&#x2DC; Increase their parts turnover by monitoring minimum and maximum parts inventory and optimizing parts reordering. Â&#x2DC; Support complex scenarios for multi-currency, multi-branch, multi-language, in different environments, etc. Incadea.myengine: The Next Generation DMS at a glance Â&#x2DC; One fully integrated solution. Extensive and customizable to meet your dealershipâ&#x20AC;&#x2122;s needs Â&#x2DC; Customized work world experience through the new role- tailored client (RTC) Â&#x2DC; One workplace for each dealership associate: Twenty-one unique and preconfigured automotive roles available

Marios Diogenous, Sales Manager

Â&#x2DC; Supports complex scenarios for multi-currency, multi-branch, multi-language, different makes, etc. Automation and optimization features available, which increase productivity and collaboration (barcodes, notifications, etc.) Â&#x2DC; Central hub for all your customer information (including sales, marketing and customer service) through the relationship management tool Â&#x2DC; Advanced analytics and reporting tools help you monitor and analyze real time KPIs and data Enables you to manage key areas of your dealership on the go via incadea mobile apps Â&#x2DC; Cloud enabled. No additional hardware investments

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UNICARS

nicars is part of the Tseriotis Group, one of the largest corporate entities in Cyprus, consisting of operational and holding companies in Cyprus and Greece. The Groupâ&#x20AC;&#x2122;s origins date back to 1916, while the current Board of Directors consists of third and fourth generation family members. Unicars is the authorised representative of Volkswagen, SEAT, Skoda, Audi, Volkswagen Commercial Vehicles and Ducati Motorcycles. It also maintains an authorised Lamborghini Workshop in Nicosia. Unicars has shareholding participation and administration control of the MAN Sales and Services (Cyprus) Ltd, and is representative of MAN commercial vehicles in Cyprus. Unicars is also a shareholder in Uniwheels, a company that operates the car rental franchise of SIXT and other international companies. Since1950, the year that P.M. Tseriotis entered the automotive business, Unicars has recorded an upward trend, both in automotive sales as well as in the evolution, organization and development of its network.

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Alexandros Diogenous, CEO

Nicosia Audi Service Team

Unicars has historically achieved a market share of about 17% in car sales and today has a customer base of more than 30,000 active customers. The company employs more than 200 people and has an Authorised Partners Network all over Cyprus, with Sale Points and Workshops in Nicosia, Limassol, Larnaca and Paphos.

Unicars After Sales Service Unicarsâ&#x20AC;&#x2122; After Sales philosophy strives to offer a complete and exceptional service to its customers by constantly investing in the improvement and upgrading of its facilities and employees. The company maintains five authorised Workshops for the Volkswagen, SEAT,

New VW Tiguan

Skoda, Audi and Volkswagen Commercial brands, with geographical coverage all over Cyprus. For Lamborghini and Ducati Motorcycles, After Sales Services are offered in Nicosia. All premises are equipped with state-of- the-art technology and equipment, always under the certification of the Brands. Unicars is certified with the Quality Management System of the Volkswagen Group which includes quality standard ISO 9001:2008 as well as all other factory requirements. In 2012 in Nicosia, Unicars inaugurated the Audi Terminal (only one hundred such buildings exist worldwide), a new technical support and sales centre of unique quality designed by Audi to represent the values of the Brand. Furthermore, all After Sales staff, both technical and non-technical, undergo certification trainings provided by certified factory trainers, using authorized educational material and equipment.

Nicosia Audi Sales Team

Volkswagen In 1953,Panayiotis Tseriotis, the founder of P.M Tseriotis LTd, recognized the dynamics of the unknown – and eccentric for that era – Volkswagen ‘Beetle’ and secured the exclusivity of the Volkswagen brand in Cyprus. The Volkswagen was the “Car of the People” which, in turn, gave its name to the largest European automaker. With historical models like the ‘Beetle’ (1936), the VW Bully (1949) and the Golf (1974), Volkswagen dominated the hearts of thousands of people worldwide. Today, Volkswagen has motoring proposals for every need: cars incorporating innovative technologies focused on safety, driving, pleasure and comfort. The most anticipated model for 2016 is the new Tiguan. Revealed at the Frankfurt Motor Show 2015, the new Tiguan gets a sharp new look – influenced by the

latest Golf and Passat – plus more space and more efficient engines.

Audi In 1976, Unicars was established after the merge of the automotive branch of P.M. Tseriotis Ltd and Motovia, until then the exclusive importer of Audi AG to Cyprus. Unicars undertook the exclusive importation, distribution and after-sale services of Audi vehicles. Audi’s history goes back as far as1899, when its founder, August Horch, established the first of four historical companies. The four circles in the Audi logo symbolize the four automakers (Audi, DKW, Horch and Wanderer) combined to

create a single production company. The new company was named ‘Auto Union AG’ and, in 1985, was renamed Audi. Audi’s ambition is to lead the way in both design and technology and to offer customers sporty, high quality and innovative products, as well as intelligent mobility solutions. With a total of 1,741,129 cars delivered in 2015, the Audi brand advanced to a new record level. In January 2016, the fifth generation new Audi A4 was presented in Cyprus, impressing with its groundbreaking synthesis of technology and aesthetics.The new Audi A4 is even more powerful, more efficient and more intelligent. Also in 2016, the new elegant A5 and the ‘small’ SUV Q2 will be introduced.

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Ducati Monster 1200

innovative use of information and communication, a muscular exterior and low, dynamic lines that offer the generous amount of space one demands of an SUV.

New Skoda Fabia SEAT Ateca

Ducati

Skoda In 1998, Unicars became the exclusive representative of Skoda Auto, the really promising Czech Company, with a long and successful history in the world automotive industry. The Czech automaker Skoda was founded in 1885 by Vaclav Klement, who at first manufactured bicycles. The first car built by Skoda was the Voiturette A and Skoda has since focused exclusively on car manufacturing. Since 1991, Skoda has belonged to the Volkswagen Group, offering models in all categories, with the bestknown being the Fabia, Octavia, Yeti and Superb. Skoda cars are characterized by their value for money, reliability and quality that is constantly being upgraded, exploiting the expertise of the Volkswagen group. Skoda plans to present a number of new cars by Christmas 2016, starting with the third generation Fabia hatchback, which was launched in Cyprus in early 2016 and the new seven-seat Skoda SUV expected at

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the end of the year, a car that will add to the already high sales of the successful Yeti.

SEAT

Î&#x2122;n 1990, Unicars undertook the exclusive importation of the Spanish vehicle manufacturer SEAT, another member of the Volkswagen Group. Soon, SEAT models had gained a leading position in sales, especially in the sector of lightweight professional commercial vehicles. The Spanish automaker SEATwas founded in 1950 by a collaboration of the National Institute of Industry of Spain with the Italian Fiat company. In 1981, the Volkswagen Group acquired SEAT, initiating a new course for the Spanish company. The first successful models resulting from this collaboration were the Toledo in 1991, followed by the Ibiza, Leon and Cordoba models. At the 2015 Geneva Motor Show, SEAT presented the long-awaited SUV ATECA. The SEAT ATECA show car has it all: an

In 1950, Ducati launched its first motorcycle and, since then, has been manufacturing and designing the worldâ&#x20AC;&#x2122;s most attractive machines. Ducati is proud to embody Italian industry! The essence of Italian style shows through the design of each bike: sinuous, seductive and flexible lines with a permanent, timeless quality that sets an unsurpassable standard. Since December 2015, the Ducati elite brand, which was bought by Audi in 2012, has been represented by Unicars. Customers can test drive some of the famous Ducati models like the Multistrata, Scrambler or Monster at the Nicosia Audi Terminal.

Lamborghini

Unicars has maintained an authorised Lamborghini workshop in Nicosia since 2007. Lamborghini is a high-performance machine and needs skilled maintenance to ensure optimum safety and performance. Our technicians use the latest diagnostic equipment and repair work is carried out using genuine Lamborghini parts. CONTACT DETAILS 81,&$56 +HDGTDUWHUVÂś DGGUHVV <LDQQRX .UDQLGLRWL 6W ,QGXVWULDO DUHD /DWVLD 1LFRVLD &\SUXV 3RVWDO $GGUHVV 3 2 %R[ 1LFRVLD &\SUXV 7HO )D[ H PDLO LQIR#XQLFDUV FRP :HEVLWH ZZZ XQLFDUV FRP

IN GOOD COMPANY

TRADING PLACES (;&+$1*,1* 9,(:6 21 /,)( $6 $1 (03/2<(( $7 :,1'625 %52.(56 /7' By Effy Pafitis | Photos by Emma Louise Charalambous

100 | GOLD | The Business Magazine of Cyprus

t is no secret that quality human capital is often lauded as the key to corporate success, the true force behind sustained growth and innovation in all sectors of the economy. Managers and industry leaders alike have a responsibility to recognize this and offer a working environment conducive to both the personal development and satisfaction of employees – one feeds off of the other. Johny Abuaitah, CEO of Windsor Brokers, does not take this responsibility lightly. The firm has shaped its corporate philosophy with its employees’ well-being in mind, encouraging staff to ascend to the pinnacle of their careers, positively impacting the company in the process. Though now spearheading the Cyprus Investment Firm, which was the very first of its kind on its establishment on the island in 1988 – leading the industry even then – Abuaitah began at Windsor Brokers over 25 years ago as an entry-level employee, holding several roles at the company as he steadily climbed the career ladder, proving his right to leadership. This experience has undoubtedly afforded him unique insight into the requirements of the continuously growing team, whose strength has uniquely positioned Windsor Brokers as a pioneer in investment services delivered in over 80 countries where its clients are located. The Windsor Brokers team consists of over 100 employees, each of whom has made a significant commitment to the firm. “We are one of the very few companies in this industry with such a low employee turnover,” Abuaitah explains. This commitment does not go unnoticed; at the end of each year, the company rewards employees for their loyalty by offering

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IN GOOD COMPANY

Directors’ Appreciation Awards to those who have been part of the Windsor team for over 10 years, 15 years and 20 years. How have such great levels of staff satisfaction and long-term employment come about, I wonder? It soon becomes clear that the company’s philosophy is at the heart of this. “Our biggest asset is our human capital. Employees at Windsor Brokers are not numbers. They are individuals who are part of a family where trust, loyalty and commitment prevail. Our philosophy is that people need to feel that they are respected, valued and part of a team,” Abuaitah says. The CEO feels that when employees are empowered and motivated, it is easier to reach optimal performance and achieve company goals. Indeed, it is this sentiment that has allowed many of the world’s leading companies to grow in size and prominence, while retaining the professional excellence of its staff. However, such a philosophy alone is not enough to inspire the dedication of any team; it must be implemented in pragmatic terms. For Windsor Brokers, this means offering its international workforce – comprising professionals of over 20 different nationalities – a comprehensive benefits package. “Employees are offered medical insurance, training budgets for educational purposes upon evaluation, flexible working conditions in particular cases,” the CEO tells me, “and we have also reapplied for a provident fund. Last but not least, we have a small entertainment committee that is responsible for organising various company events. At the same time, we have increased our Corporate Social Responsibility activities for team-building and charity purposes.” The firm, invests a lot of time and effort in encouraging employees’ sense of belonging and purpose in the workplace. “Last year,” Abuaitah confides, “we focused on matters related to commitment and the promotion of stronger working relationships, health and safety at work, equality in employment, work-life reconciliation and other good practices.” Following the successful implementation of the above, Windsor Brokers was the first Cypriot Investment Firm to receive SIR 2014 Accreditation from the Cyprus Employers and Industrialists Federation (OEB). “When we feel engaged, we deliver better.

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(03/2<((6 $7 :,1'625 %52.(56 $5( 127 180%(56 7+(< $5( ,1',9,'8$/6 :+2 $5( 3$57 2) $ )$0,/< When we deliver better, it is for the benefit of all.” This, I soon learn, is a simple yet challenging principle. “Our policies aim to create an even more professional environment whilst maintaining our human approach, to encourage a healthier workflow, better communication, stronger teamwork and to make people feel more engaged towards each other, the Company and their duties.” Windsor Brokers, the CEO affirms, is determined and committed to providing a working environment free from any form of discrimination, with a view to attracting, developing and retaining the best people for its business. The company’s successes and its team, it appears, are one and the same. This attitude, in turn, contributes to the future accomplishments of the establishment. “Recognition and motivation are key elements to keeping a team happy. Throughout the years, we have remained a pioneer in the financial industry. We have received several awards for our products, services, partnership programmes, innovations and

customer support. None of this, however, would have been possible without a dedicated team.” For this reason, Abuaitah stresses, it is vital for his team to remain inspired and bear in mind that there is always room for improvement in order to keep up the good work!.

BOOK SHELF

BOOKS of the month 1

World-beating entrepreneurs are not as extraordinary as we might think

How the Internet era is changing the way we obtain expertise

The biggest cases of one RI %ULWDLQ·V greatest criminal lawyers

600 years Disruptive of technologies, consumerism new funding and how it methods and has changed billionaire our world insights

JEREMY +87&+,1621·6 &$6( HISTORIES: FROM /$'< &+$77(5/(<·6 /29(5 TO HOWARD MARKS By Thomas Grant (John Murray, 2016) R.R.P. £9.99 (£7.49 FROM AMAZON.CO.UK)

In this unorthodox approach to entrepreneurship, Adam Grant says that he wants to “debunk the myth that originality requires extreme risk taking and persuade you that originals are actually far more ordinary than we realize…” He suggests, moreover, that ‘originals’ are simply people who take the initiative to make their visions a reality and that we can all become more original. A highly enjoyable read.

THE FUTURE OF THE PROFESSIONS: HOW TECHNOLOGY WILL TRANSFORM THE WORK OF HUMAN EXPERTS By Richard & Daniel Susskind (OUP Oxford, 2015) R.R.P. £18.99 (£14.99 FROM AMAZON.CO.UK)

Voted as one of the best books of 2015, it raises important practical and moral questions as the authors predict the decline of today’s professions and describe the people and ‘increasingly capable systems’ that will replace them in an Internet-based society. They propose six new models for producing and making ‘practical expertise’ available in society.

Biographies of lawyers are rare but Hutchinson’s career was so unusually varied that it makes a splendid subject. Arguably the greatest criminal barrister in Britain from the ‘60s to the ‘80s, he was involved in many of the greatest trials of the period, defending George Blake, Christine Keeler, ‘Great Train Robber’ Charlie Wilson and art ‘faker’ Tom Keating among others.

In his 800-page account of consumerism through the ages, Trentmann unfolds the extraordinary history that has shaped our material world, from late Ming China, Renaissance Italy and the British Empire to the present. It explores how we have come to live with so much and how today’s economies live or die by our spending.

In this manual/manifesto, the authors look at the exponential technologies that are disrupting today’s biggest companies, including 3D printing, artificial intelligence and robotics. They talk to billionaire entrepreneurs Larry Page, Elon Musk, Richard Branson, and Jeff Bezos, and show how to utilise the power of crowd-powered tools to make bold business dreams come true.

ORIGINALS: HOW NON-CONFORMISTS CHANGE THE WORLD By Adam Grant (WH Allen, 2016) R.R.P. £20.00 (£13.60 FROM AMAZON.CO.UK)

EMPIRE OF THINGS: HOW WE BECAME A WORLD OF CONSUMERS, FROM THE FIFTEENTH CENTURY TO THE TWENTY-FIRST By Frank Trentmann (Allen Lane, 2016) R.R.P. £30.00 (£20.40 FROM AMAZON.CO.UK)

BOLD: HOW TO GO BIG, CREATE WEALTH AND IMPACT THE WORLD By Peter H. Diamandis & Steven Kotler (Simon & Schuster International, 2015) R.R.P. £10.99 (£7.99 FROM AMAZON.CO.UK)

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COLLECTION

THE QUALITY 104 | GOLD | The Business Magazine off C Cyprus

This is

IN A SOCIETY OBSESSED WITH INNOVATIVE DEVICES AND MODERN TECHNOLOGY, IT IS EASY TO LOSE SIGHT OF THE SIMPLE ITEMS THAT HAVE BECOME SUCH INTEGRAL PARTS OF OUR LIVES THAT WE TAKE THEIR HERITAGE FOR GRANTED. By Effy Pafitis Photograph by Jo Michaelides

OF OLD

not so for Christodoulos Angastiniotis, Chairman of the Cyprus Investment Promotion Agency and Managing Director of VitaTrace Nutrition Ltd., whose deep-rooted interest in – and appreciation for – the quality of old has led him to amass a collection of vintage items spanning a variety of categories, from radios and military equipment to printing presses, vine presses, safes and more. “I’m not obsessed with old or antique things, I just have a certain appreciation for items that were made with excellent quality and served a significant purpose. Such quality is rarely duplicated nowadays. And so I like to incorporate them into my life,” he says. I can see that, I think, having just walked past a beautifully restored JG Schelter & Giesecke Phoenix printing press which takes prime position at the entrance of Angastiniotis’ modern offices, offering a perfect marriage between the innovation of the present and the quality of the past. The press, I soon learn, was among the first to be brought to the island during the British colonial era and dates back to around 1907. When he discovered it, discarded and in distressed condition in a warehouse that he had purchased, he immediately recognized its significance and sent it away to experts for restoration. Regardless of this chance find, the collection, I am told, began many years earlier. Indeed, his father began to collect vintage radios, having witnessed firsthand their extraordinary evolution. He sought to cultivate and fully re-

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COLLECTION

store a sample of the exquisite pieces manufactured by industry leaders for personal home use, as well as key pieces used by the military to intercept radio transmissions and more. Christodoulos Angastiniotis has duly expanded this collection, amassing unique finds on his travels, both around the island’s rural villages and abroad. A selection of these is also prominently placed at the entrance of his office premises. Some 80 radios or more comprise the collection, ranging in dates and origins. Some of these feature memorable designs, such as the 1931 Philips 930A, and – among Angastiniotis’ favourites – a 1950 Kolster Brandes FB10, aka the famous ‘Toaster Radio’, which actually belonged to his grandmother. Others, meanwhile, boast once-revolutionary features, much like the collection’s

I have a certain appreciation for items that were made with excellent quality… such quality is rarely duplicated nowadays multiple military oscillographs (devices used to record the wave-forms of changing currents or voltages), army world band receivers (used for military short-wave listening), and wavemeters (instruments used to measure and set frequencies for the communications needs of land, sea and air forces.) “I have a great fondness for these radios. The personal radios are the predecessors of today’s plethora of music

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devices, while the rare army equipment played a significant role in controlling and defending national and international security,” he explains. “They will never be produced again in the same way, and that is why they should be preserved in some way, to capture the quality and innovation they represented at the time.” With many specimens from leading radio manufacturers of the day, including Eddystone and Atwater Kent, found in locations throughout Cyprus, Egypt, Jordan, the UK and elsewhere, the former President of the Nicosia Chamber of Commerce and Industry affirms that he is content with this section of his collection – for now. “I would not rule out acquiring more radios, but it’s not my goal at the moment. If I see a nice piece when I’m on my

travels, then yes maybe I will but only if I can carry it!” The collection does not end there, however. Angastiniotis has slowly enlarged it to include other vintage items. An antique wine press, for example, was in the family. It is now presented with pride in his home, he tells me. Another domestic item – an antique wheelbarrow some 200 years old – also claims its place in the Angastiniotis family garden, while a number of antique Singer sewing machine tables adorn his home, as does an antique telephone, once the sole means of communication for a Cypriot copper mine in the event of a fire. Angastiniotis’ collection also comprises two impressive safes which stand guard on either side of his office. The first, a tall, carved wooden specimen, was once the keeper of the

valuables of a wealthy family in the village of Kythrea. Imported from Austria, it belonged to the village president, who owned the region’s only grain mill using hydroelectricity – an innovation at the time. The safe features many delicate details, including a mirrored glass engraving on the inside and an inscription on the door declaring its high-grade fireproof status. “This had been thrown out of the house to which it belonged in dreadful condition,” Angastiniotis recalls. “The owners grandson had decided he didn’t want it and left it out for it to be collected.” Having come across it by chance, he was happy to retrieve the treasure masked as trash, and pay the household the £200 they requested as its value as scrap metal. The safe is now unrecognizable following an 8-month

long restoration process, its flawless face gleaming in the light streaming through Angastiniotis’ office windows. The other safe, meanwhile, was a birthday gift from his son. Acquired in similarly bad shape, the British piece is now in as immaculate condition as when it was first made. So, with such a vast collection, does one particular piece hold Angastiniotis’ heart more than others? “Different pieces have sentimental value for different reasons, so I cannot think of just one,” he says. And would he add anything else to the collection? “Well I am happy with what I have right now – I just feel that it is a great shame to throw these things away and let time claim them entirely.” Other than proving undoubtedly interesting and enjoyable, such collections can also be quite valuable. Angastiniotis senses my question and, before I have

My dream PZ [V ÄUK HU old house in downtown Nicosia and turn it into a radio museum, combined with a wine cellar the time to ask, interjects: “No. There is no question of me selling this collection.” Regardless of price, I press? “Forget it,” he insists, telling me that he has already refused

offers for the majority of items on display at his offices and at home. “These are not items to purchase and then sell on – I mean, you don’t acquire them for profit – unless it is your business of course! In my case, my goal is simply to continue appreciating and enjoying them.” So how does he plan to make the most of this now impressive collection? “My dream is to find an old house in downtown Nicosia and turn it into a radio museum, combined with a wine cellar. Visitors could come and enjoy these wonderful pieces from the past and taste excellent wine as they do so.” Having secured his promise that Gold will receive a VIP invitation to the opening of such a museum should it ever come to fruition, I leave Angastiniotis’ offices – once again passing the safes, radios and printing press – feeling a renewed appreciation for, as he put it, “the quality of old.” www.goldnews.com.cy | GOLD | 107

Lunc Lunch with MICHALIS PAPADOPOULOS

THE HEAD OF CORPORATE COMMUNICATIONS AT CYTA TALKS ABOUT SOME OF THE PEOPLE WHO HAVE INSPIRED HIM, HOW FOR 10 YEARS HE INSISTED ON DOING AT LEAST ONE GOOD DEED EVERY DAY AND WHY HE BELIEVES THAT INNOVATION IS THE KEY TO CYPRUS’ FUTURE PROSPERITY.

Gold

ichalis Papadopoulos is one of those rare individuals who, in the course of a simple conversation, has the knowledge and ability to illustrate his views with quotations from as diverse a range of sources as you can possibly imagine: literature, philosophy, poetry, popular songs, he’s got it. It’s no coincidence that one of his favourite books is Logicomix by Apostolos Doxiadis, which brings mathematics and philosophy together in a comic book format. He has chosen Tutto il Giorno Romantica in Nicosia for our lunch. It is one of his two favou-

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By John Vickers

GIORNO TUTTO IL TICA N A M , O R karides St. lli a P s ra 3, Evagoavitos, Nicosia Lyk

BEANS BBIT LEMON RA F WINE SO 2 GLASSE TR WATER 1L TIRAMISU COFFEES TOTAL

€8.00 €14.00 €8.00 €2.50 €6.00 €0.00

€38.50

rite restaurants in the capital and has been selected because it is the quieter of the two and thus more conducive to conversation. Knowing that he is Head of Corporate Communications at Cyta, I have no doubts that he will be the talkative type and one who is skilled at putting over his point of view. What surprises me is the breadth and depth of his knowledge and the impressive combination of idealism and pragmatism that makes up his fascinating character. As he approaches his 55th birthday, Papadopoulos knows who he is and how he got here and he has come pre-

pared to tell me about the key people and places that have moulded his way of thinking and his personality. The youngest of four children, he spent his early years in Larnaca and among his earliest memories are chasing butterflies through the neighbourhood, hearing music from a nearby piano teacher’s house and seeing gypsy fortune tellers knock on doors. “They were wonderful times, like something out of a fairytale. That was when I came to understand and respect diversity and to like people for what they were,” he says. Although we are sitting in one of the island’s best Italian restaurants, it is also wellknown for its local dishes at lunchtime and so my companion chooses beans while I got for the lemon rabbit, with a glass of house wine for each of us. Both dishes are delightful. We return to Michalis Papadopoulos’ childhood memories, which resume in Nicosia, where the family had moved to, and post-invasion 1974. He still has vivid recollections of going to the Philoxenia Hotel and watching the buses bringing back the Greek Cypriot prisoners of war from Turkey. “I felt that it was a way of healing my own psychological wounds,” he tells me. “I saw the pain etched on the faces of those waiting families, which only changed when they were reunited with the men who had been freed. Seeing that happen helped me deal with the whole experience of the invasion and bring it to an end in my young mind. Of course,

I also saw the disappointment of those whose people had not come back and, as we know, it’s taken more than 40 years for that story to be reaching some kind of conclusion.” From a memory based on national and human tragedy, Papadopoulos moves on to one that was to mould him as a person and set him on his 30-year career path. “My next milestone was Chicago,” he says, beaming with pleasure, “a city that was a centre of creativity at the time. I found myself studying electrical and computer engineering at one of the best universities in the world in a country that appeared to me to be 150 years ahead of everyone else.” Among his teachers at the Illinois Institute of Technology were a student of Einstein, a Nobel Prize nominee and a Head of Department who believed in him. “Dr Joe Locicero was a brilliant man,” he recalls, “and I was with him for a number of years. He encouraged me to start teaching at the university, to do my PhD and to work at the Rockwell international research laboratory.” In the end, Papadopoulos returned

to Cyprus when his father proposed that he accept a job with an offshore company that was offering an extremely attractive salary by the standards of the time. He came to investigate the possibility and, when his father fell ill, he decided to stay, working for Middle East Wire & Wireless for two years before joining Cyta in 1988. He has held many positions within the organisation and over the past 15 years, he has been involved in innovation. Nowhere has affected his vision of what Cyprus could be doing in this area as has Israel, a visit to which brought about

what he describes as a “paradigm shift” in his thinking. “I went on a trip to look at the country’s innovation ecosystem and I realised that the development model for Israel was entirely different from the one I had in mind,” he says. “Until then, I thought that innovation meant creating new products that you market and try to sell in the traditional way. The Israelis do it differently: They incubate ideas, not the final product, and they sell them to social media companies and big multinational companies. Each one might bring around $200 million to the country.” He was also impressed on that trip by the way that, for the duration of their national military service, all conscripts in Israel (male and female) spend three hours a day working on business plans and start-ups. “We met 20-yearold millionaires who never bothered to go to university because they learned everything they needed to know about business during their army service,” he tells me. He didn’t miss a chance to tell the Minister of Defence about this and Cyta has since

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| LUNCH WITH GOLD |

forged a strategic alliance with the Ministry of Defence, KPMG and the Open University, with a view to encouraging conscripts to make better use of their time in the army, for themselves and for the country. The need for academia to be more involved in entrepreneurship is a subject close to Papadopoulos’ heart and he has been striving with colleagues to promote new synergies. “When I came back from Israel,” he recalls, “I spoke to 4,000 students at universities and schools, to professional organisations and conferences, trying to be an evangelist for innovation in Cyprus. In the US and Israel, academia is actively involved in the innovation ecosystem,” he explains. “Even Greece has a lot of success in nanotechnology spinoffs, for example, and Cyta is part of the Cyprus ecosystem. We’ve been very active, facilitating the establishment of two incubators – Capital Impact and the Microsoft Innovation Center – and entering high schools through the Junior Achievement initiative. We have signed MoUs with all the universities in Cyprus and we’re hoping to persuade industry representatives to prioritise their problems. Today no-one can do anything alone. We need everyone to come together.” Like all well-rounded people, Michalis Papadopoulos has much more than just work on his mind. He says that he has written enough to fill 20 books of his own and he is an avid reader of authors as diverse as popular novelist Dan Brown and existential psychiatrist Irvin D. Yalom. One of his favourite books is Uncle Petros and Goldbach’s Conjecture by Apostolos Doxiadis. “It’s one I must have given to at least 100 young people, most of whom have gone on to study mathematics,” he says with pride. He has also found comfort in what he describes as “pure human kindness,” particularly when his daughter was ill many years ago: “I was moved by the

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willingness of people completely unknown to me who were giving blood at a time when we were having difficulty to convince our own relatives to do so,” he recalls. “That was when I decided to apply Yalom’s ‘tombstone epitaph’ approach to my own life [the idea of asking yourself what you would like your final epitaph to say about you] and try to do at least one good deed every day. And for 10 years that’s what I did.” I can’t help asking why he is describing this admirable behaviour in the past tense. “The emotional payload was heavier than I could stand,” he replies with an air of sadness. “For example, I would donate blood every three months even though I fainted every time I saw the needle! And I also realised that, unfortunately, there are people who, when they know that you are there for them, basically don’t know when to stop asking.”

because he felt that they were not being rational. “In the end, being a believer or a non-believer isn’t something that can be rationalised through discussions about the existence of God,” he acknowledges. “You either believe or you don’t.” We are offered coffee and dessert but Papadopoulos declines the latter: “I’ve put on a few pounds recently so I won’t join you,” he says, having seen the smile on my face upon seeing tiramisu on the menu. The waitress is not convinced and brings two plates but he is determined not to give in to the sweet temptation in front of us. For now, Michalis Papadopoulos has no intention of leaving Cyta but he often thinks about what he would do if he did not have focus on making a living: “I am inspired by large-scale visions,” he confides. “A major cause could make me put myself at the service of others. For each of us, life should not only be about becoming a better individual but about giving coming

IN THIS RATIONAL WORLD, MATTERS OF FAITH ARE VERY PERSONAL, OTHERWISE PEOPLE THINK THAT YOU ARE AN ECCENTRIC! It was during the same difficult period of his daughter’s ill-health that he came across yet another influential figure: Father Gabriel, a monk, who taught him “how to be patient and optimistic, how to analyse things with the heart as well as the mind.” Papadopoulos says this in what sounds to me like an almost apologetic tone. Indeed, he goes on to say that, “in this rational world, matters of faith are very personal, otherwise people think that you are an eccentric!” and he admits that he had always been “quite aggressive” with religious people, precisely

generations a society that is better than the one we inherited. So we can’t give up.” Before we leave the restaurant, he gives me another quote, this time from the Nobel Prize-winning Greek poet Odysseas Elytis: Amid the sadness of endless mediocrity that suffocates us from all sides, I console myself that somewhere in a small room some stubborn people are struggling to neutralise corruption. “Unfortunately, there aren’t many of these stubborn people around!” he says, laughing. I suspect, however, that this remarkable man is definitely one of them.

BUSINESS CLASS

What is the most exciting destination you have visited for work? And for pleasure? :HTVH T\Z[ [OL TVZ[ L_JP[PUN KLZ[PUH[PVU 0»]L ]PZP[LK MVY ^VYR ¶ P[ PZ JLY[HPUS` [OL TVZ[ L_V[PJ >L had a 10-year joint venture with the government of Samoa, jointly owning a ship supplying the island with the necessary goods. Through this, I became the Consul of Samoa in Cyprus and I have visited [OL :V\[O 7HJPÄJ PZSHUK VU THU` VJJHZPVUZ Its natural surroundings are very beautiful and [OL WLVWSL HYL L_[YLTLS` MYPLUKS` -VY WSLHZ\YL H YV\UK[YPW [OYV\NO 4L_PJV some 20 years ago ranks high in my memory.

Tell us about your best corporate travel experience.

For Intership’s 20th Anniversary in 2009, we chartered an Airbus A320 from Cyprus Airways to take the company’s LU[PYL Z[HɈ [V 9OVKLZ MVY HU L_[LUKLK weekend! Even though our anniversary KPUULY OLSK PU [OL JLU[YL VM 9OVKLZ town, ended abruptly due to o a sudden summer downpour, the entire trip How often ^HZ NYLH[ M\U HUK KLÄUP[LS` ^HZ NYLH[ M\U HUK KLÄ ÄUP[LS` ÄUP[LS` do you travel, whether unforgettable.

for business or pleasure?

Dieter Rohdenburg

I travel about 100 days per year for business, so roughly one week per month. In addition, I take 10-14 days for summer holidays with the family. My business travels take me to Europe (particularly Germany and the UK), the Far East (China, Japan, Singapore, Philippines) as well as the Americas (USA, Canada, Caribbean).

The CEO of Intership Navigation Co Ltd divulges details ails of his corporate travels throughout Europe, the Far Eastt and the Americas, explaining why Cyprus is the ideal location ation for both business and pleasure. p Byy Effyy Pafitis What is the most impressive hotel you have ever stayed at and why? What is your favourite airline, and why?

Travelling to Europe and further west, my preferred airline is Lufthansa. The standard of the planes and service, on-time departure and arrival, quality of food and more are all top level. Going east, I choose Emirates or Qatar. The Middle Eastern airlines have really set new standards for airline service quality in all aspects.

What is your favourite international destination and why?

Cuba. We have long-running business with mining companies on the island, and due to this, I visit the island regularly. Despite its economic problems, the original charm charm r of the island iislan n endures – at least for take over again.... now, until the Americans Ame er cigar manufacturers Also, the cig ‘must’ for every are a ‘m cigar cig ig gar lover!

;OL /HSM 4VVU 9LZVY[ PU 4VU[LNV )H` PU 1HTHPJH ZWYPUNZ [V TPUK 0[ VɈLYZ WLYMLJ[ all-round service with a personal butler, yet remains an intimate and quiet retreat. It should be on everybody’s bucket list! We operate a small power plant in Jamaica, and have several other business relations with the country so the Half Moon is a great place to wind down after days of business meetings and events.

How does Cyprus compare to this location?

Cyprus is a great place to live, work and raise children. The climate is great, there are lots of things to do in your leisure time. As a business centre, it is well connected for those travelling both east and west. With a European mentality and a Mediterranean way of life, Cyprus is the ideal location to combine business and family life.

If you could travel anywhere tomorrow, where would you go?

I am actually travelling tomorrow – to Germany. If I had a choice, I’d be heading to Havana for the annual cigar festival there. I’d be staying at the Meliá Cohiba Hotel, ^OLYL THU` JPNHY HÄJPVUHKVZ ^PSS stay – and where one of the best Cuban rums is served!

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WHAT’S

is Kristine Opola

THINGS

to do GREEK MUSIC

DIMITRIS BASIS The popular Greek singer and musician is in Cyprus for two shows. Diachroniki Music Stage, Nicosia Wednesday, 24 February, 10.00pm Thursday, 25 February, 9.30pm Sto Perama, Limassol YIANNIS VARDIS & GIORGOS LIANOS Singer-songwriters Yiannis Vardis and Giorgos Lianos continue their successful live collaboration. Opa Opa Club, Limassol Friday, 28 February, 11.30pm

Stephanos Korkolis

STEFANOS KORKOLIS Renowned Greek composer, pianist and performer Stefanos Korkolis, with singer Sophia Manousaki in two concert/ gala dinner events for charity. Aphrodite Hills, Paphos Saturday, 27 February 27, 8.00pm Presidential Palace, Nicosia Monday, 29 February, 8.00pm STAMATIS KRAOUNAKIS & PANAYIOTIS MARGARIS Greek songwriter Stamatis Kraounakis and guitarist Panayiotis Margaris perform their own songs and others, together and solo. Rialto Theatre, Limassol Monday, 29 February 29, 8.30pm Larnaca Municipal Theatre Tuesday, 1 March, 8.30pm Vladimiros Kafkarides Cultural Centre, Nicosia Wednesday, 2 March, 8.30pm

Efstathia Greek singer-songwriter accompanied by guitarist-singer Manolis Lianis. Vinylio Wine W Etc, Limassol Friday, Yiannis Vardis 4 March, 9 00pm 9.00pm

112 1 11 12 1 2 | GOLD GOL GO G OL OLD | T The Th hee Business h Bu B ussin iin ness ness esss Magazine Ma M aga ga gaz azziin ine nee o n off C Cy Cyp Cyprus ypr pru p rru us Stamatis Kraounakis & Panayiotis Margaris

Giorgos Lianos

Rialto Theatre, Limassol K Cineplex Nicosia K Cineplex Paphos Saturday, 5 March, 7.55pm

OPERA MANON LESCAUT Live in HD from the Metropolitan Opera, New York, the Met’s new production of Puccini’s opera, starring soprano Kristine Opolais and tenor Jonas Kaufmann.

DANCE REBEL DANCERS 25 YEARS LIVING THE DREAM Spectacular dance show featuring all the Rebel Dancers teams to mark their versary. 25th anniversary. STROVOLOS MUNICIPAL THEATRE, NICOSIA THURSDAY 25 FEBRUARY, 8.00PM

LIMASSOL CARNIVAL Limassol’s biggest annual event starts on Thursday, 3 March and continues for 10 days. The first of the two main events: CHILDREN’S FANCY DRESS PARADE Seafront Road, Limassol Sunday, 6 March, 11.30am

PIANO RECITALS Rialto Theatre, Limassol Monday, 22 February, 8.30pm STAVROS GASPARATOS: EXPANDED PIANO The Greek composer and digital sound artist uses microphones and digital manipulation to put the audience ‘inside’ the piano.

GRAND CARNIVAL PARADE MAKARIOS AVENUE, LIMASSOL SUNDAY, 13 MARCH, PIANO IN FOUR 2.30PM Music for four hands by Mozart, Schu-

FAMILY ENTERTAINMENT

bert, Satie and others, performed by Clio Papadia and Stephanie Sotiriou. Saturday, 20 February, 8.00pm Technopolis 20, Paphos Kanthos Arts Centre, Nicosia Thursday, 25 February, 8.00pm

LIVING DINOSAURS 25 species of dinosaur, including a full-size TRex, brought to live by animatronic technology, plus 3D movie and more. Cyprus International State Fair Until Monday, 28 March, 9.00am-8.00pm daily TRIBUTE TO VIENNA Elina Linchevskaya and Zbynek Maruska perform Mozart, Brahms and Strauss. Rialto Theatre, Limassol Thursday, 25 February, 8.30pm GALINA CHISTIAKOVA The prizewinner in more than 30 international Competitionss performs an all-French programme off works by Debussy, Poulenc, Satie and Ravel. The Shoe Factory, Nicosiaa 0pm Friday, 26 February, 8.30pm

ART EXHIBITIONS THE LONG MARCH The second solo exhibition of artist Christos Avraam. Gloria Gallery, Nicosia Until Thursday, 3 March SMALL TREASURES i Private collection off engravings, maps, books and decorative items from the 17th-19th century with a Cyprus connection. Opus 39 Gallery, Nicosia Until Saturday, 27 February

BACKGROUND: SURFACE, FORM, FIGURE New work by Christakis Christofi. Loukia & Michael Zampelas Art Museum, Nicosia Until Saturday, 27 February THE FORGOTTEN ART: WHEN LIFE TURNS TO STONE Sculptures by Marianna Psara. Thalassa Municipal Museum, Ayia Napa Until Monday, 29 February LUSH ART IN AUSTERE TIMES Group exhibition of All for works by young and sale under emerging artists €500. from Cyprus, Is Not Gallery, Greece, Nicosia Until Thursday, England, 3 March France and Russia.

www.goldnews.com.cy | GOLD | 113

A DAY IN THE LIFE

Anastasia Papadopoulou

“A lthough I wouldn’t argue with the idea that breakfast is the most important meal of the day, I don’t usually bother. A coffee is enough before I start my working day. I deal with many different types of cases so I’m certainly never bored. Law was not my first choice. The subject that I enjoyed immensely at school was history and that’s what I studied in Edinburgh. I loved it too – those four years were the best of my life – but in the end I decided that law allowed me go beyond the theoretical stage of history. Obviously, the family tradition influenced my choices but I have no regrets about becoming a lawyer. I like working with clients from different backgrounds and with different

interests. I enjoy arguing in court too but, above all, I believe that my background in law has given me the chance to do all my extra activities, regarding the drafting of legislation on children’s rights, women’s rights, gay rights, etc., and I’m very grateful for it. I may not have breakfast but lunchtime is sacred! I go home for an hour and a half every day and during that time I don’t answer calls or talk to anyone. It’s just for me and it helps me make it through the rest of the day. Lunch is usually a takeaway but I actually love cooking. After work, 2-3 times a week I play tennis or go to the gym and on other days I may go to a nearby wine bar and relax with friends. I enjoy light reading – the

The lawyer and partner in Tassos Papadopoulos & Associates LLC admits to being a Star Wars geek, reveals her all-time favourite novel, and explains why politics is about much more than being elected. last one I enjoyed was in Greek: Elena Akrita’s 5-Star Murder – and if I want something more serious I go back to my history books. I also have a habit of re-reading books that I love and my all-time favourite is To Kill A Mockingbird by Harper Lee. I was very disappointed with last year’s ‘sequel’ and stopped reading it halfway through, which is something I rarely do. I’m also a fanatical reader of Vanity Fair magazine, which gives readers a great insight into how things work in the rest of the world. I love movies and I’ve been collecting original posters for years. The last one I saw at the cinema was Star Wars:The Force Awakens – I’ve been a fan of the series since childhood and I still have some collectibles at home. I’m a Star Wars geek! In sport, apart from tennis, I like football. I support APOEL and Liverpool, although this season I wouldn’t mind if Leicester win the Premier League. I travel 2-3 times a year for work and I try to arrange a couple of trips for myself. London always feels like home but in the summer there’s nothing to compare with the Greek islands. Being from a well-known family has not always been easy – having your personal life

made public and hearing ugly things that are usually founded in fantasy can be a hassle – but ,·P D 6WDU :DUV I recognize geek! that it’s given me opportunities that others don’t have. People often ask me if I would like to become 0\ DOO WLPH involved in IDYRXULWH politics but I think that everything I do – especially my involvement in children’s rights, wom,·P D KXJH IDQ en’s rights, gay rights – is politics. I don’t think I would gain anything by running for office. In fact, it would limit me to a single party. I have a good work/life balance but I guess I have the freedom to make it the way I want to and not everyone can do that. In the future I’d like to be more creative and, since I’m a film fanatic, maybe I’ll try to write a screenplay some day.”

BEING FROM A WELL-KNOWN FAMILY

HAS NOT ALWAYS BEEN EASY BUT IT’S GIVEN ME OPPORTUNITIES THAT OTHERS DON’T HAVE 114 | GOLD | The Business Magazine of Cyprus

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