On 2 May 2025, the Central Bank of Cyprus published a revised directive on the prevention of money laundering and terrorist financing, set to take effect on 2 June 2025. The directive aims to enhance the compliance framework for banks and other obligated entities, while also facilitating citizens' and businesses' interactions with the financial sector.
Key Highlights of the new directive:
- Risk-Based Customer Categorisation: Banks and other obligated entities are encouraged to implement policies that prevent unjustified denial or delay in lawful access to financial services, particularly for customers assessed as low-risk.
- Simplified Documentation: During updates, the use of identity document copies (instead of originals) is permitted, streamlining the process. Additionally, information obtained over the course of the business relationship can be utilised, reducing the data citizens need to provide during updates.
- Alternative Documentation for Vulnerable Individuals: For individuals unable to comply due to health or physical limitations, alternative forms of documentation are acceptable, demonstrating sensitivity towards such cases.
- Flexible Proof of Residence: Acceptable proof of residence now includes government documents or electronic utility bills.
- Third-Party Certification: The certification of documents by third parties, such as government services, is permitted, along with the use of electronic documents, enhancing customer service options.
The Central Bank of Cyprus emphasises that these measures aim to simplify procedures, ease the burden on citizens and businesses, and benefit the economy as a whole. However, it underscores that the strictness of the directive remains unchanged, reaffirming its commitment to preserving and enhancing the credibility of financial system in Cyprus.
The Central Bank of Cyprus has published the new Directive (available in Greek only), along with an accompanying official announcement. Both documents are accessible via the links below for further reference.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
