CBC fines RCB Bank €800,000 citing failure to comply with AML law


By Stelios Orphanides

The Central Bank of Cyprus said it fined RCB Bank €800,000 citing the Russian-owned lender’s failure to comply with provisions of anti-money laundering legislation.

“The decision is based on the procedures and principles of administrative law, therefore the Central Bank of Cyprus, inter-alia, provides the person concerned the opportunity to be heard before taking a final decision,” it said.

The decision was taken on November 29, “on the basis of findings emanating from on-site examinations which covered the period up to 2014,” it added.

The fine, which can be reduced to €680,000 if RCB pays it within a certain time period, is one of the highest ever imposed. In November last year, the central bank fined Ukraine’s PrivatBank €1.5m, after sanctioning Hellenic Bank €1.1m five months earlier also for not being fully compliant with anti-money laundering legislation. It had imposed a €1.2m fine on the Cyprus unit of the former Tanzanian FBME Bank two years ago.

In a telephone interview, a bank spokesperson said that the lender already settled the fine.


About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Iron mike

    There are no safe banks in Cyprus They all make a net loss even after the financial crisis they have not learnt very much

    • Adele is back x

      True I now have to go to three villages from me, as all the banks have closed down …. We are going down the swanny Mike.

      • EGB

        As inconvenient as it might seem, that’s actually a good sign. Most bills can now be paid through JCC, increasingly shops and kiosks now take card payments. Yes, it is still necessary to have cash but the €200 I like to keep in my wallet can last months.

    • Neroli

      I know that! That’s RCBs advert!

      • EGB

        To be fair the advert says 2016 and this fine is for activities before 2014 – when exactly before 2014 I don’t know but not long before 2014 banking in Cyprus was a free for all and RCB was still the Russian Commercial Bank.

        I bank with them and they’re fine, they don’t charge on accounts with an average balance over €10,000 (or a monthly deposit of an amount I don’t remember), they text me every time I use my card, send me a balance by text every day and send me monthly statements by email as well as allowing me internet access to my account to do what I need to do.

        They don’t have a lot of branches, and the ATMs give me €50 notes but these are my only complaints.

        I feel I have more money if I get it in €20 notes, my problem.

        • Neroli

          I know, but you have to laugh at the advert for a bank here! Anyway happing banking – I might join you there soon !I

  • Bystander

    And upcoming law to make cash deals over 10K a criminal offence complements these news nicely

    • EGB

      If that ever gets put into law, possibly about as much chance as requiring all doctors to accept credit card payment.

    • alexander reutersward

      in spain its 2000 euros and they look at lowering it further, 10,000 is still a lot of money to buy watches etc for.