Central Bank of Cyprus Issues Revised AML Directive
On 2 May 2025, the Central Bank of Cyprus issued a revised directive on the prevention of money laundering and terrorist financing, which entered into force on 2 June 2025. The updated directive aims to strengthen the anti-money laundering (AML) framework applicable to banks and other obligated entities while also facilitating smoother interactions between financial institutions, businesses, and citizens.
The directive introduces several practical updates, including risk-based customer categorisation to avoid unjustified denial of financial services for low-risk clients, simplified documentation requirements during customer data updates, and greater flexibility in proving identity and residence. It also allows alternative documentation for vulnerable individuals and permits certification of documents by third parties or through electronic formats, while maintaining strict compliance standards to safeguard the integrity and credibility of Cyprus’s financial system.
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