The European Central Bank chief says a financial rescue package for Cyprus must be accompanied by close and continuous monitoring of its progress in implementing anti-money-laundering policies.

Mario Draghi on Monday told European lawmakers that it is not sufficient to put all relevant laws on the books, adding the crucial part is implementing them.

Cyprus is seeking a bailout from its European partners to stabilize its ailing banks and keep the government afloat, likely totaling as much as (EURO)17 billion ($23 billion), or roughly the equivalent of the country's annual gross domestic product.

Germany and other nations have voiced skepticism on the bailout, alleging Cypriot banks have failed to halt money-laundering by their many Russian clients.

Cyprus rejects the allegations saying it has enacted the necessary EU laws.