Anti-Money Laundering (AML) compliance is not just a legal obligation, it’s a commitment to transparency, credibility, and long-term business viability. In Cyprus, a growing financial hub, AML regulations apply to a wide range of industries and require proactive compliance from professionals and companies alike.
Who Needs to Comply with AML in Cyprus?
Under the Prevention and Suppression of Money Laundering Law (Law 188(I)/2007), AML obligations apply to:
- Administrative service providers (ASPs)
- Accounting and audit firms
- Legal professionals and law firms
- Financial institutions and investment firms
- Real estate agencies
- Trust and nominee service providers.
Key AML Compliance Requirements
- Customer Due Diligence (CDD)
- Identify and verify clients and ultimate beneficial owners (UBOs).
- Understand the purpose and nature of the business relationship.
- Risk-Based Approach (RBA)
- Assess client risk level (low, medium, or high).
- Apply appropriate due diligence based on the assessed risk.
- Record Keeping
- Maintain client documentation and transaction records for at least 5 years after the end of the business relationship.
- Ensure electronic and physical backups are properly stored.
- Staff Training
- Train employees regularly on AML procedures, red flags, and reporting requirements.
- Train employees regularly on AML procedures, red flags, and reporting requirements.
- Suspicious Transaction Reporting (STR)
- Appoint a qualified AML Compliance Officer.
- Establish internal policies and controls to detect and report suspicious activity.
- Suspicious Transaction Reporting (STR)
- If suspicious activity is detected, file a report with MOKAS (Cyprus’ Financial Intelligence Unit) immediately.
- If suspicious activity is detected, file a report with MOKAS (Cyprus’ Financial Intelligence Unit) immediately.
Regulatory Framework & Authorities in Cyprus
- MOKAS – Unit for Combating Money Laundering
- ICPAC – Institute of Certified Public Accountants of Cyprus
- CySEC – Cyprus Securities and Exchange Commission
- Cyprus Bar Association – Supervisory body for legal professionals
- Central Bank of Cyprus – Regulates banking institutions
Cyprus AML law aligns with EU AML Directives and follows the international standards of the FATF (Financial Action Task Force).
Practical Tips for Better Compliance
- Use professional tools (e.g., World-Check, LexisNexis) for client screening.
- Regularly review and update your AML Risk Assessment.
- Reassess existing clients as part of ongoing monitoring obligations.
- Align all documentation and procedures with the latest legislation.
Ensure your business meets
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AML obligations with confidence.
