Cyprus: Money Laundering

The Cyprus Bar Association has issued its first Guidelines on Business-Wide Risk Assessment (BWRA), establishing a comprehensive framework for supervised entities to identify and mitigate money laundering, terrorist financing and sanctions risks. These guidelines provide practical direction for compliance with the new EU Anti-Money Laundering Regulation ahead of its July 2027 implementation deadline, outlining methodologies for risk assessment, control evaluation and ongoing monitoring requirements.

The Court of Justice of the European Union has ruled that banks cannot automatically refuse to open basic payment accounts solely because an applicant appears on a third-country sanctions list, such as OFAC. While such designations constitute relevant risk factors, financial institutions must conduct individual, proportionate assessments demonstrating that AML and sanctions-related risks cannot be adequately managed through appropriate measures.

On 11 June 2026, the Court of Justice of the European Union (the “Court”) delivered its judgment in Case C-81/24, Jenec. The case concerned the relationship between the right of access to a payment account with basic features under Directive 2014/92/EU (the “Payment Accounts Directive”) and the AML/CFT obligations imposed on financial institutions under Directive (EU) 2015/849 (the “AML Directive”).

In September 2025, the Department of the Registrar of Companies and Intellectual Property (the "DRCIP") issued two important announcements outlining new obligations for companies and partnerships in Cyprus.

Cyprus companies now operate in an environment aligned with EU and OECD norms, meaning investors can transact with confidence.

Cyprus is undergoing a significant regulatory transformation in 2025, reinforcing its sanctions enforcement mechanisms and modernizing its anti money laundering (AML) laws...

We've all seen the recent news about a bank being fined for deficiencies in its anti-money laundering (AML) procedures.

Artificial Intelligence is transforming our world, enabling innovation across industries and unlocking operational efficiencies once thought impossible. But with progress comes risk.

In December 2024, the Cypriot Parliament passed legislation prohibiting cash transactions exceeding €10,000 as part of its efforts to combat money laundering and financial crimes.