National Sanctions Enforcement Unit Modeled After OFSI
The Unit Is Expected to Be Operational by the End of 2024
Cyprus is set to establish a National Sanctions Enforcement Unit by the end of the year, modeled after the UK's Office of Financial Sanctions Implementation, part of the British Treasury. The unit is expected to contribute significantly in several key areas:
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Raising awareness and ensuring compliance with economic sanctions.
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Quickly identifying and addressing economic sanctions.
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Providing professional service to those affected by economic sanctions.
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Maintaining integrity and trust in the UK financial sector.
Additionally, the unit will provide information and guidance on complying with economic sanctions and will investigate suspected violations, taking necessary actions where required.
Common types of economic sanctions include asset freezes, which prohibit:
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Dealing with the assets of sanctioned individuals, including funds and properties.
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Making funds or goods available—directly or indirectly—to sanctioned persons.
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Restrictions on access to financial services and markets.
The unit will publish a list on its website of individuals, organizations, and businesses subject to economic sanctions.
On May 30, 2023, the Cypriot Republic accepted a proposal from the UK for cooperation and technical assistance as part of a Memorandum of Understanding signed between Cyprus and the UK to strengthen collaboration on issues of illicit finance.
The High Commission has designated a Project Manager and an expert team to draft a report on the establishment and operation of the Unit and improve the legislative framework for implementing sanctions based on best practices, particularly following the operational model of the British Unit.
The Project Manager and his team have held meetings, both onsite and online, since August 2023 with the Ministry of Finance, the Coordinating Committee for the creation of the Sanctions Enforcement Unit, the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission, the Police, MOKAS, the Legal Service, SELK, the Pancyprian Bar Association, and other stakeholders.
According to the proposed timeline, the unit is expected to be operational by the end of 2024, following the enactment of legislation for its establishment and operation, while the legislative framework will also be amended to strengthen the sanctions framework.
