The headline facts (what the data shows)
OECD peer-review: Cyprus participates in the Inclusive Framework and the OECD's 2023/2024 peer-review reports show broad implementation of the exchange-of-information transparency standards.
FATF / MONEYVAL: Follow-up reports (2022–2024) record measurable progress on AML/CFT since its 2019 evaluation, with strengthened frameworks.
Beneficial-owner transparency: Cyprus has a central UBO (beneficial ownership) register and updated AML law amendments in 2024 to enforce filing and verification.
EU blacklist context: The EU's non-cooperative jurisdictions list applies to third countries. As an EU member state implementing EU AML and tax-governance rules, Cyprus is not on this list.
What changed — concrete reforms and numbers
Legal reforms: Cyprus transposed the EU's 5th AML Directive in 2021 and amended its AML law again in 2023–2024, with stronger enforcement and penalties.
UBO register: The Registrar of Companies operates the ARIADNI e-portal, finalised in 2024, providing banks and regulators centralised access to ownership data.
OECD peer reviews: The OECD's 2023/2024 reports show Cyprus active in tax transparency and exchange frameworks.
AML follow-up reporting: FATF/MONEYVAL follow-ups show progress in supervision, enforcement, and banking standards.
Why investors and business owners can feel safe using Cyprus companies
Cyprus companies now operate in an environment aligned with EU and OECD norms, meaning investors can transact with confidence. The banking sector — once cautious due to heightened international scrutiny — has stabilised as AML and UBO reforms were implemented and independently reviewed, reducing the risk of unexpected account closures or compliance blockages. Cross-border payments flow smoothly under EU rules, and businesses benefit from harmonised standards that prevent arbitrary treatment by overseas tax or regulatory authorities. In practice, this means that using a Cyprus company for regional headquarters, trade, investment holding, or IP management provides operational ease without the reputational or compliance concerns often associated with offshore jurisdictions.
Why international investors continue to choose Cyprus
Beyond compliance, Cyprus offers a unique blend of advantages that attract investors worldwide. It maintains one of the most competitive corporate tax rates in the EU at 12.5%, combined with an extensive double-tax treaty network. English common-law foundations ensure a familiar and reliable legal system for contracts, dispute resolution, and corporate governance. The island's strategic location — bridging Europe, the Middle East, and Africa — makes it ideal for regional hubs. Add to this a highly educated workforce, robust professional services sector, and modern corporate infrastructure, and it becomes clear why thousands of international investors, from shipping and fintech to energy and real estate, continue to base their operations in Cyprus.
What this means for your business (practical implications)
Lower risk — Cyprus is no longer seen as opaque; it follows EU/OECD norms.
Easier banking — Reforms help speed up KYC and payment processes.
Tax certainty — Participation in OECD exchange frameworks reduces cross-border tax risk.
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