- with readers working within the Banking & Credit and Property industries
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With recent developments in the regulatory landscape in Cyprus, the importance of AML compliance for real estate professionals has come into sharper focus. Real estate transactions are increasingly recognized as a high-risk area for financial crime, and local authorities are moving to enhance the legal framework to address these risks.
The new law aims to protect the Cypriot real estate market from illicit financing and money laundering. Real estate entities, as obligated parties, must implement robust customer identification and verification procedures (KYC), assess the source of funds and beneficial ownership, and adopt regular risk assessments and client relationship reviews.
The legislation introduces a new supervisory authority tasked with monitoring compliance in the real estate sector, expected to be fully operational by July 2027. Entities must align with Cyprus AML requirements, including enhanced due diligence for high-risk transactions and regular client relationship reviews.
Accordingly, the extension of AML/CFT obligations to all real estate professionals ahead of 2027 is not merely a regulatory option, but a necessary step to address the identified risks in the Cypriot market and to ensure alignment with FATF recommendations and the European regulatory framework
Implementing these measures enhances transparency in the property market, mitigates financial risk, and helps safeguard Cyprus' reputation as a reliable investment destination.
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.
