As a consequence of European legislation to combat money laundering, under the Prevention and Suppression of Money laundering Activities law (No 61(I)/96 amended by laws since from 1997-2004 with effect from May 1996, among others Attorneys and Tax consultants are legally obliged to identify their clients.

An obligation to disclose unusual transactions has also been instituted with effect from the same date. The law prescribes that the identity of new or existing clients must be established for each new case.

The law prescribes that attorneys and tax consultants among other professions are obliged to disclose transactions of an unusual nature to an independent agency, Office for the Disclosure of Unusual Transactions the Cyprus Financial Intelligence Unit (FIU) known as MOKAS. The Act provides for indicators to identify unusual situations. In such situations, we are not permitted to invoke our right of non-disclosure.

Pursuant to the Act, reporting is mandatory and we are not permitted to inform the client about the report.

 Failing to meet the obligations pursuant to the aforementioned Acts is an economic offence for which Attorneys and Tax consultants could be prosecuted.