What is MOKAS and what powers does it have?

MOKAS is the Unit for Combating Money Laundering and Cyprus's financial intelligence unit, the national centre that receives, evaluates and analyses reports of suspected money laundering, related predicate offences and terrorist financing. It was established by Article 54 of the AML/CFT Law. Its posts sit within the Law Office of the Republic, headed by the Attorney General, but in its work it is functionally independent and autonomous.

It is made up of representatives of the Attorney General, the Chief of Police and the Director of the Department of Customs, nominated by those officials. Members are seconded by name for at least three years and are treated as investigators under the Criminal Procedure Law. A representative of the Attorney General heads the Unit.

MOKAS is not a supervisory authority. It does not license or inspect firms; that is the job of supervisors such as CySEC and the Central Bank of Cyprus, described in Who supervises firms for AML?

Obliged entities send their suspicious transaction reports to MOKAS, not to the police, the Central Bank or CySEC. MOKAS analyses them, both case by case and to spot wider trends, and may ask any obliged entity for further information, even one that has not filed a report. It has timely access to financial, administrative and law enforcement information.

When it considers it appropriate, it passes information to the Police, the Tax Department and the Customs Department, for investigation where there is a reasonable suspicion of an offence, or for intelligence. It cooperates with FIUs abroad and does not need a court order to exchange information it has gathered nationally. In exceptional and urgent cases involving terrorism, or organised crime linked to terrorism, it aims to exchange financial information with the FIUs of other EU member states straight away.

It also investigates to trace criminal proceeds that could be frozen or confiscated, executes requests for legal assistance from abroad, issues directives on how it carries out its work, and, where practicable, tells firms how useful their reports were and what follow-up they received. Each year it prepares and publishes an annual report.

Where there is a reasonable suspicion that a transaction is linked to money laundering or terrorist financing, MOKAS can instruct an obliged entity to suspend or not carry out the transaction, or to monitor the movements on a bank or other account. The instruction serves the analysis of the suspicious transaction or prepares the ground for a freezing or confiscation order.

An instruction to postpone or not execute a transaction lasts up to 7 business days and can be renewed, but never beyond 30 business days in total. A firm that follows it is not in breach of its contract with the customer.

MOKAS can also obtain information on the beneficial owners of companies and trusts, on business relationships, and on bank account holders, signatories and balances, and it can apply to court for a disclosure order.