CCA Chair Andrea Moundi Savvides: "Modern compliance goes far beyond mere regulatory adherence"

Andrea Moundi Savvides, Founding Member and Chair of the Cyprus Compliance Association (CCA) and Global Director of Risk and Compliance at Harneys, explains how compliance has evolved and highlights the critical importance of leaders and professionals embracing it.

In a recent Special Feature in GOLD magazine, she talks about how the compliance landscape in Cyprus has developed in recent years, explores the role AI, Blockchain and other technology plays in enhancing compliance frameworks and promoting organisational integrity, and discusses how maintaining strict regulatory compliance can be balanced with fostering innovation and business growth. Moundi Savvides, in addition, also gives her opinion on the role of leadership in compliance and shares her vision for the future of compliance in Cyprus.

How has the compliance landscape in Cyprus evolved in recent years?

The compliance landscape in Cyprus and elsewhere has evolved significantly, especially in the context of globalisation. At its core, compliance is the effort by professionals, businesses and regulators to adhere to specific rules and regulations.

However, modern compliance goes far beyond mere regulatory adherence. It now encompasses navigating daily regulatory pressures, avoiding heavy fines, adapting to complex regulatory environments, keeping up with rapid technological advancements, addressing compliance resistance and balancing business growth with ethical practices.

This evolution has even led to instances of over-compliance. The efficient use of RegTech could play a pivotal role in shaping the future of compliance but cost and resource constraints remain the most critical challenges to its adoption.

What is the role of technologies like AI and Blockchain in enhancing compliance frameworks and promoting organisational integrity?

Emerging technologies unquestionably have a transformative role to play and organisations cannot turn a blind eye to such advancements. But there are always two sides to a coin. For instance, with AI there is fresh potential accompanied by novel risks.

AI technologies can be used to assist in the fight against financial crime (enhancing transaction monitoring/alert handling) but simultaneously be abused by criminals in phishing attempts. Blockchain can be used to help law enforcement agencies track criminal groups because of the technology used whilst encouraging anonymity. It is all about striking the right balance.

How can another balance be achieved: that of maintaining strict regulatory compliance while fostering innovation and business growth?

When each stakeholder in the regulatory ecosystem reflects on the purpose and evolution of rules and regulations, it becomes clear that innovation, growth and compliance can coexist harmoniously. In recent years, global challenges have underscored the importance of this balance.

The COVID-19 pandemic disrupted supply chains and spurred a rise in scams, fraud and cybercrime. The conflict in Ukraine, along with the unprecedented sanctions imposed on Russia, has heightened sanctions-related risks for institutions. Additionally, the rapid digitalisation of the economy is reshaping traditional money laundering processes, blurring the lines between its various stages.

In this ever-evolving regulatory landscape, Public-Private Partnerships (PPPs) are critical to maintaining equilibrium. Effective collaboration among compliance officers, lawyers, law enforcement, regulators and business owners is essential to navigate these complexities and ensure a cohesive approach.

What role does leadership play in fostering a culture of integrity within an organisation?

A fundamental starting point – and one that everyone has likely heard before – is the concept of “setting the tone from the top.” Without management buy-in, compliance professionals in the private sector cannot achieve much.

While awareness of compliance has grown significantly in recent years, this hasn’t always translated into meaningful cultural transformation. Many organisations and practitioners still view compliance as a “box-ticking” exercise, mistakenly believing that collecting a passport and a utility bill is enough. However, compliance is far more nuanced than that. Integrating compliance into corporate culture remains one of the biggest challenges for compliance professionals.

Although leadership plays a critical role, it is ultimately up to compliance professionals to take the lead and bring management on board. This requires engaging with leadership in a way that embeds compliance and ethics in everyday decision-making. The failure to align compliance with a broader business strategy is a fundamental weakness. Often, compliance is viewed as “them vs. us” and it is our responsibility to change this narrative.

Striking the right balance between ethics and compliance is paramount for fostering a culture of compliance. In conversations with colleagues, I often ask: while we may technically be compliant with regulations, are we acting ethically? As a lawyer by profession, I find these discussions particularly thought-provoking. Overall, we are all on a learning curve and some organisations are further along it than others.

This may be due to greater resources enabling faster progress or a necessity driven by regulatory failings or heavy fines. Within the private sector, there is also variation across regulated industries. For example, the banking and financial sectors typically have a more mature compliance culture than others.

Compliance professionals must first assess where their organisation stands in terms of compliance maturity. In larger multinational companies, highly skilled compliance professionals often sit on the Board but this is less common in smaller, local organisations where limited resources understandably make it more challenging.

What is your vision for the future of compliance in Cyprus?

Recognising the importance of a unified voice and community, the CCA was established in 2024 to empower governance, risk and compliance professionals in Cyprus, welcoming anyone in the field to join us. Our mission is to cultivate a community of compliance leaders equipped with the knowledge, skills and tools to navigate evolving regulatory landscapes effectively and ethically, ensuring sustainable excellence, market stability and the protection of consumers and investors.

More broadly, I envision Cyprus becoming a model jurisdiction for compliance, setting an example as a nation that has successfully turned challenges into opportunities and established itself as a benchmark for regulatory excellence in the financial services sector, which is a cornerstone of our economy.

This Special Feature first appeared in the February edition of GOLD magazine. Click here to view it.