Northern Cyprus AML and compliance services.
The anti-money laundering law defines obligated entities by listing them; most trading companies are not on that list. Annual return and notification obligations, however, apply to every company, and we follow up these processes.
- Annual return and notification follow-up
- Beneficial owner declarations
- Regulatory compliance from a single team
Obligations Applying to Your Company.
Obligations relating to company records apply to every company. The anti-money laundering law, however, applies only to the activities it lists.
Registrar of Companies obligations
- Annual return
- Notification of director, secretary and address changes
- Annual accounts and filing
- Documented answers to the bank's know-your-customer questions
Is your activity on this list?
- Accountancy, audit and tax advisory
- Company service provision
- Real estate and commercial property
- Jewellery
- Motor vehicle sales
- Foreign exchange, payment and crypto asset services
Additional obligations if listed
- Know Your Customer Measures
- Suspicious activity reporting
- Reporting of transactions above the cash transaction limit
- Risk assessment, institutional policy and a compliance officer
Companies trading in the Free Port are mostly in the first group only.
Our AML and Compliance Services.
We assess the AML and regulatory obligations that apply to your business, and provide professional support in establishing and implementing the necessary policy, procedure, record-keeping and control processes.
Our service scope
- AML Compliance Assessment
- AML Risk Assessment
- AML Policies and Procedures
- KYC / CDD / EDD
- Sanctions and PEP Screening
- UBO and Corporate Compliance
- AML Training and Periodic Review
Outside our scope
- Legal representation, litigation and defence services
- Decisions and responsibility regarding suspicious transaction reporting
- Banks' independent account-opening and risk assessment decisions
- The client's own legal obligations and any sanctions arising from their breach
Northern Cyprus AML and Corporate Compliance Obligations.
Each heading sets out the scope of the obligation, when it applies and the support we provide.
Annual ReturnNotifying the Registrar of Companies of the company's current details.Every company
- Obligation
- The annual return showing the company's shareholder, director and capital details must be submitted to the Registrar of Companies.
- When it applies
- Within 42 days of the annual general meeting.
- Support from Ortac Global
- We follow the return date and prepare and submit the return.
Change NotificationsNotifying changes of director, secretary or registered address.Every company
- Obligation
- Changes of director, secretary or registered address must be notified to the Registrar of Companies.
- When it applies
- Within 14 days of the change.
- Support from Ortac Global
- Once the change is passed to us, we carry out the notification process.
Annual Accounts and FilingPreparing the annual accounts and filing the return in April.Every company
- Obligation
- The company's annual accounts must be prepared and its return filed; an auditor's report is not mandatory.
- When it applies
- Every year, in April.
- Support from Ortac Global
- The annual accounts are prepared by our accounting team.
Beneficial Owner DeclarationDocumenting the individual behind the company to the bank.Every company
- Obligation
- The ownership structure must be documented, with passport and address documents, down to the individual behind the company.
- When it applies
- At account opening and when the details change.
- Support from Ortac Global
- We provide support in preparing the declarations and their attachments. The decision to open an account rests with the bank concerned.
Filings That Continue Under the ExemptionA tax exemption does not remove notification obligations.Every company
- Obligation
- Even if a Free Port company benefits from the tax exemption, its filing and registration obligations continue.
- When it applies
- According to the filing calendar, throughout the year.
- Support from Ortac Global
- We follow the filing calendar and see that the filings are prepared on time.
Know Your Customer MeasuresVerifying the customer's identity with documents in obligated activities.Depends on activity
- Obligation
- Those carrying on the activities listed in the law must take the necessary measures to know their customers.
- When it applies
- When a business relationship is established and for as long as the relationship continues.
- Support from Ortac Global
- We provide support in establishing customer due diligence procedures and the record-keeping system.
Suspicious and Cash Transaction ReportingReporting suspicious transactions and cash transactions above the limit to the Unit (MABEB).Depends on activity
- Obligation
- Suspicious transactions and transactions exceeding the cash transaction limit must be reported to the Unit.
- When it applies
- When suspicion arises and when the limit is exceeded.
- Support from Ortac Global
- We provide support in putting the reporting process in writing. The decision to report rests with the company's compliance officer.
Institutional Policy and Compliance OfficerA written institutional policy, risk assessment and training.Depends on activity
- Obligation
- The institutional policy must be set out in writing, a risk assessment carried out, and a compliance officer and deputy appointed and notified to the Unit.
- When it applies
- Established when the activity begins; reviewed through regular internal audit.
- Support from Ortac Global
- We provide support in preparing the policy and procedure documents to suit your activity.
Documenting the Beneficial Owner.
The person taken into account in the bank's assessment is the individual at the end of the ownership chain.
- Down to the individual
At account opening, the ownership structure is documented with passport and address documents.
- Where there is an intermediate company
Where a shareholder is a company, that company's shareholders are also documented.
- When details change
When the ownership structure changes, the details held at the bank are also updated.
Customer Due Diligence and AML Control Process.
In obligated activities, every new customer goes through the same five-stage check. Your bank also reviews your company in the same order.
Customer Information
The necessary information about the customer is obtained before the business relationship begins.
Identity and UBO
Documents are verified; the beneficial owner is identified.
Sanctions Screening
The customer's name is screened against international sanctions lists.
Risk Assessment
The risk level is determined according to country, activity and type of transaction.
Records and Retention
Documents and the result are recorded and kept for the period required by law.
Continuous AML Compliance Management.
Compliance is not a process completed at formation. Obligations relating to company records are met at four separate times.
- At formationOpening the Records
Registrar, tax and Free Port records are created.
- On a changeNotification Within 14 Days
Changes of director, secretary or address are notified.
- After the general meetingAnnual Return
Submitted to the Registrar of Companies within 42 days.
- Throughout the yearFiling and Records
Accounting records and filings are carried out according to the calendar.
Consequences of Non-Compliance with AML Obligations.
A breach of the obligations may have different consequences, depending on the nature of the breach and the assessment of the institution concerned.
- Legal Sanctions
The anti-money laundering law provides for sanctions against those who do not meet their obligations.
- Late Notifications
The company and its directors are responsible for annual returns and notifications not submitted on time.
- Impact on Banking Relationships
An account may be restricted or closed if the bank's requests go unanswered.
- Falling Outside the Exemption
Transactions directed at the Northern Cyprus domestic market fall outside the scope of the Free Port exemption.
Integrated Corporate Services.
AML and regulatory compliance are closely linked to your business's financial and corporate governance processes. At Ortac Global, we provide complementary professional services in accounting, banking, corporate advisory and company formation.
Frequently Asked Questions.
The law defines obligated entities by listing them: banks, financial institutions, accountants, company service providers, estate agents, jewellers and car dealerships, among others. If your activity is not on this list, you are not regarded as an obligated entity; we assess your situation together at a meeting.
Your bank and your accountant are obligated entities. They are required to know their customers and to document the individual behind the company.
Yes. The exemption does not remove filing and registration obligations.
The change is notified to the Registrar of Companies within 14 days. Once the change is passed to us, the notification process is carried out.
It is filed with the Registrar of Companies within 42 days of the annual general meeting.
Obligated entities make the report to the Unit (MABEB) within the Department of Money, Exchange and Development Fund Affairs (Para, Kambiyo ve İnkişaf Sandığı İşleri Dairesi).
No. The decision to open an account rests with the bank concerned; we prepare the application documents in the form the bank requires.