Know all 2025 Anti-Money Laundering Regulatory Updates
The regulatory environment for financial institutions continues to evolve rapidly, with 2025 poised to introduce significant updates to the Anti-Money Laundering (AML) framework. These changes are particularly relevant for entities regulated by the Cyprus Securities and Exchange Commission (CySEC), which remains committed to aligning its supervisory practices with international standards and EU directives.
In this article, the SALVUS Regulatory Compliance team explores the latest CySEC Circulars that offer critical guidance on the implementation, interpretation, and enforcement of upcoming regulatory updates. These circulars not only clarify supervisory expectations but also provide practical insights into how firms can adjust their internal controls, policies, and procedures to maintain compliance within an evolving regulatory landscape. They further address the following areas:
1. The key Anti-Money Laundering (AML) updates for 2025
2. Key Circulars for AML/CFT
3. How SALVUS can assist you?
We regularly share bite-sized insights on LinkedIn such as those found in this article
1. The key Anti-Money Laundering (AML) updates
As part of its obligations under European Union membership, Cyprus is required to implement harmonized measures to combat Money Laundering (ML) and Terrorism Financing (TF), consistent with those adopted by other EU Member States. To meet these requirements, Cyprus routinely evaluates and incorporates European AML Directives into its domestic legislation, ensuring they are compatible with the national legal framework. There are updates and regulatory changes in the AML domain as follows:
- The European Anti-Money Laundering Authority (AMLA) – is a newly established EU body designed to centralize and strengthen the supervision of Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) across the European Union.
- Regulation (EU) 2024/1624 – to establish a unified legal framework across the European Union to prevent the misuse of the financial system for money laundering and terrorist financing.
- Directive (EU) 2024/1654 – Amends Directive (EU) 2019/1153 – to improve access by competent authorities to centralized bank account registries across the EU.
- The 6th Anti-Money Laundering Directive (Directive (EU) 2024/1654) – Amends Directive (EU) 2019/1153 – to strengthen the EU’s ability to combat financial crime by improving access to financial data across borders and enhancing cooperation among Member States.
2. Key Circulars for AML/CFT
CySEC regularly publishes circulars on its official website to communicate regulatory updates and guidance to its supervised entities. These circulars may be addressed to specific categories such as Cyprus Investment Firms (CIFs), Crypto-Asset Service Providers (CASPs), Alternative Investment Fund Managers (AIFMs), Management Companies (MCs) or to a combination of these, depending on the subject matter.
Below is a selection of circulars that the SALVUS Regulatory Compliance team considers particularly relevant to the AML/CFT operations of regulated entities:
- Circular C614
– Issued in connection with two sets of Guidelines from the European Banking Authority (EBA) concerning national restrictive measures.
– The first set of guidelines targets financial institutions and prudential supervisors, outlining expectations for internal governance, senior management, and risk oversight.
– The second set of guidelines is directed at Payment Service Providers (PSPs) and CASPs, focusing on Know Your Customer (KYC) procedures, screening protocols, and due diligence requirements.
- Circular C516
– Addresses CySEC’s review of the Annual Reports submitted by Anti-Money Laundering Compliance Officers (AMLCOs).
– It highlights common deficiencies and provides key reminders to help supervised entities meet their regulatory obligations.
- Circular C550
– Summarizes findings from CySEC’s onsite inspections related to the prevention of money laundering and terrorist financing (ML/TF).
– The circular identifies recurring weaknesses and shares examples of good practices observed across regulated entities.
- Circular C535
– Relates to the EBA Guidelines on compliance management and the role of the AML/CFT Compliance Officer.
– These Guidelines clarify the responsibilities of the AMLCO and the management body and introduce the requirement to appoint a group-level AML compliance officer for entities that are part of a financial group.
In 2024, CySEC Circulars C655 and C656 were issued and are critical for strengthening AML/CFT compliance across regulated entities. Circular C655 was issued following CySEC’s audit of the AML Compliance Officers’ Annual Reports, highlighting reporting deficiencies and areas for improvement in governance and oversight, while Circular C656 complements this by presenting the findings from AML/CFT inspections, detailing common weaknesses observed across regulated entities and sharing examples of good practices to guide future compliance efforts. They highlight common deficiencies in reporting and inspections, and provide actionable guidance to improve governance, monitoring, and risk management practices.
Final Thoughts
As regulatory expectations for CIFs grow tougher each year, the need for solid internal systems and strong safeguards has never been more urgent. Firms that overlook weaknesses in their operations aren’t just risking hefty fines but also putting client’s trust and their reputation on the line.
With CySEC sharpening its focus on compliance, CIF entities must make protecting client assets a top priority and invest in strengthening their internal controls. It’s not just about ticking boxes anymore, it’s about building a resilient, trustworthy business in a complex regulatory world.
3. How SALVUS can assist you?
The SALVUS Regulatory Compliance Team partners closely with investment firms to design and maintain robust policies and procedures that align with core regulatory requirements. Whether it’s assessing the suitability and appropriateness of investment services or navigating the complexities of conflict-of-interest management, SALVUS empowers CIFs to build frameworks that not only meet compliance standards but also enhance operational transparency and efficiency.
In partnership with the Institute for Professional Excellence (IforPE), SALVUS proudly presents a self-paced CPD course titled Know all 2025 Anti-Money Laundering Regulatory Updates, designed specifically for professionals in the financial sector. This course provides the key regulatory updates on Anti-Money Laundering (AML) for 2025, as well as the related upcoming developments.
Please contact us at compliance@salvusfunds.com if you require support with your AML/CFT regulatory compliance obligations or are interested in our IforPE courses.
#StayAhead
Should you be interested to read more about Organizational & Operational Requirements, AML compliance or the Compliance Function requirements please visit the selected articles below:
- How to prepare the AMLCO Annual Report in 2025
- Developing a Compliant AML Manual in 2025: Best Practices for Regulated Firms
The information provided in this article is for general information purposes only. You should always seek professional advice suitable for your needs.