The Central Bank of Cyprus has imposed a €750,000 administrative fine on Banque SBA Cyprus following shortcomings identified in a 2023 inspection focused on anti-money laundering and counter-terrorist financing compliance.
The decision, announced on September 29, falls within the Central Bank’s supervisory mandate under Cyprus’ legislation for the prevention and suppression of money laundering activities.
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Inspection Findings Triggered The Penalty
According to the Central Bank, the sanction was based on findings from its 2023 review of the bank’s compliance with specific provisions of the law and with the CBC’s directive to credit institutions on the prevention of money laundering and terrorist financing.
The Central Bank said section 59(6) of the Prevention and Suppression of Money Laundering Activities Law of 2007, as amended, gives it the authority to impose measures on supervised entities that fail to comply with Part VIII of the legislation or with relevant directives issued by the regulator.
Regulatory Due Process Was Followed
The CBC also noted that such decisions are made in line with administrative law procedures and principles, including the requirement to give the affected institution an opportunity to respond before a final ruling is issued.
After reviewing the findings of the 2023 inspection, the Central Bank concluded that an administrative fine of €750,000 was appropriate in the case of Banque SBA Cyprus.
Anti-Money Laundering Enforcement Remains A Priority
The failures cited by the regulator relate to provisions of the law and the fifth edition of the CBC directive to credit institutions on anti-money laundering and terrorist financing, issued in February 2019.
As Cyprus’ competent authority for enforcing anti-money laundering rules in relation to institutions under its supervision, the Central Bank continues to maintain a strict posture toward compliance breaches across the banking sector.







