A panel discussion at the 12th International Compliance Forum, presented by ECOMMBX underway in Limassol explored ‘The Great Convergence: When AML, Conduct & ESG Collide.’
The participating stakeholders shared their expert opinions on the supervisory shift created by the combination of behaviour, data and risk culture as well on as ESG & greenwashing enforcement.
The experts also shared their views and experience on AMLA and prudential convergence as well as more widely on compliance as a “whole-company” function.
Participating the panel were Haroulla Arkade, Chair of the AML & Compliance Committee, The Institute of Certified Public Accountants of Cyprus (ICPAC), Prof. Pieris Chourides, Chairman, Cyprus Gaming and Casino Supervision Commission, Demetra Kalogerou, Chairwoman, Cysec, Financial Advisor, DKA Financial Consultants Ltd, George Karatzias, Executive Board Member, Central Bank of Cyprus, Louiza Protopapa, President of Limassol Bar Association, Member of the Cyprus Bar Association Council and Panagiotis Trisokkas, President, National Betting Authority.
The discussion was moderated by Gregory Dellas, Group Chief Compliance & Risk Officer, ECOMMBX, Chair, ACAMS Cyprus Chapter and the Chair of the conference.
The key conclusions of the panel discussion included that an integrated supervisory approach is required with supervisors moving away from treating AML, governance, operational resilience, and conduct as separate concerns. Instead, organizations like the Central Bank of Cyprus have restructured their divisions to work under integrated leadership, recognizing that weaknesses in one area create a domino effect across others.
The panel also talked about governance as the root cause of many problems, underlining that weak governance is the foundational issue underlying many risks, from financial crime to misconduct to misleading ESG claims. Problems stem from boards that don't genuinely challenge management, lack specialized expertise (particularly in areas like ESG and AI), and fail to embed compliance culture throughout the organization, they suggested.
The panellists underlined that the human element is critical. While technology and data-driven approaches are essential, they cannot replace human judgment and critical thinking. Institutions that invest in human capital, training, and critical thinking outperform those relying solely on procedural compliance, the experts noted.
They also said that professional gatekeepers play a vital role.
Accountants, auditors, and lawyers are increasingly important in identifying hidden risks, governance weaknesses, and financial crime indicators. However, they face challenges balancing legal privilege, confidentiality, and their responsibility to combat financial crime, the panellists said.
They said that compliance culture must shift from box-ticking to strategy explaining that organizations must move from treating compliance as a separate department function to embedding it into daily operations and business strategy. Compliance should drive strategic decisions rather than being an afterthought, the experts underlined.
They suggested that regulatory complexity creates risk and that the proliferation of overlapping regulatory frameworks (AML, MiFi, DORA, ESG, CSDDD, etc.) creates operational burden, particularly for smaller firms. There's a real danger that firms become skilled at documentation without genuinely understanding and spotting risks, the panellits said.
They went on to note that private-public dialogue is essential and that the relationship between regulators and the private sector must evolve from a hierarchical model to collaborative dialogue. Since technology and risk evolve faster than regulation, regulators need to understand operational realities through active engagement with industry professionals.
Across all sectors -finance, gaming, legal- trust between stakeholders, regulators, and institutions is fundamental to effective supervision and compliance culture, the panellits also underlined.
They suggested that the next steps to consider would be to evaluate your governance structure to ensure boards have the expertise and accountability mechanisms needed for today's complex environment.
They also suggested the need to assess compliance culture beyond documentation—look for evidence of actual implementation and critical thinking.
The panellist also underlined the importance of strengthening collaboration with regulators and peer institutions to share insights on emerging risks and investing in human capital through training and development, particularly in areas like AI, ESG, and emerging technologies.
Diamond Sponsor: ECOMMBX
Platinum Sponsor: Freedom Holding Corp.
Gold Sponsors: Treppides, XM
Silver Sponsors: Complyport, KPMG, Moebius, Zygos
Supporters: ACAMS Cyprus Chapter, ACCA, ACEMPI, CCA, ICAEW, Primetel, The Marshall Islands Registry
With the support of: ACB, ACFE, Cyprus Bar Association, CIF, CFA Society, CYFA, Institute of Internal Auditors
Communication Sponsors: CBN News, GOLD, IN Business
