Deal on terms for independent audit

CYPRUS and international lenders yesterday agreed on the terms of reference of an independent audit into the island’s anti-money laundering legal framework and its implementation, which is one of the conditions set by the EU for the island’s bailout.
The audit into Cyprus’ legislation against money laundering will be conducted by an independent private firm with the participation of the Moneyval Committee of the Council of Europe and the supervision of the Central Bank of Cyprus.
According to the Cyprus News Agency (CNA) the Central Bank has invited six international companies to submit their bids.
The decision on which firm will undertake the audit is expected on Monday or Tuesday.
CNA said the findings must be submitted by March 31 in a bid to have a deal on the island’s bailout by the end of the month.
Citing unnamed sources, CNA said bank clients should not worry about the audit because “bank confidentiality and personal data have been secured.”
Cyprus has repeatedly rejected allegations, mainly from Germany, that banks engage in money-laundering activities.
Berlin has claimed that Cyprus has become a conduit for money-laundering as Russian individuals and companies have a high level of deposits in the banking sector.