Cyprus selects 3 Due diligence firms for CIP checks

Cyprus has pre-selected three due diligence firms, to conduct Enhanced Due diligence (EDD) checks on applicants who apply for Cyprus investment scheme.  The three firms selected are

• Sterling Diligence,
• S-RM Intelligence and Risk Consulting, and
• Kroll

The Government issued a tender this year to select due diligence firms and will be spending €1.4m every year on vetting of citizenship investors investing €2m euros or more.

The Ministry is expected to sign the contract with these three firms by December and contracts will be renewed yearly. This was announced by the Interior minister on Tuesday, reported by Cyprus Mail.

This also means Cyprus will commence EDD checks from December for new Cyprus investment scheme  applicants, considering the citizenship program is limited to a limit of only 700 per year.

The selected three firms will assist the Ministry to conduct enhanced global due diligence on non-Cypriot citizens applying for the acquisition of the Cypriot citizenship through investments on

• Verify their identity, background, financial history, and
• Sources of wealth and
• Assess the relevant risk for corruption, terrorism, money laundering, political sanctions, and their reputation.
• Provide training to the competent governmental staff on relevant topics, including due diligence, understanding risk andAnti-money laundering / Anti-Bribery and Corruption (AML/ABC) compliance.

New Background Checks

Cyprus will further apply new background checks on all applicants who received passports between 2008 and 2018, using the the latest risk and compliance tools. Any violations on investment scheme rules will be subjected to revoking of passports previously issued to investors, said the Interior Minister

These new checks are being made as a result of cambodian scandal and cyprus intensifying its effort to prevent abuse of cyprus investment scheme.