Know all 2026 Anti-Money Laundering Regulatory Updates

1. The key Anti-Money Laundering (AML) updates

As an EU Member State, Cyprus is expected to keep its AML/CFT framework aligned with the broader European approach to combating Money Laundering (ML) and Terrorist Financing (TF). In practice, this means regularly reviewing developments at EU level and reflecting the relevant requirements in its national legal and regulatory framework. 

The main AML/CFT regulatory developments include the following: 

• The European Anti-Money Laundering Authority (AMLA) – Regulation (EU) 2024/1620 – establishes AMLA to strengthen and harmonise AML/CFT supervision across the European Union.
• The Anti-Money Laundering Regulation (AMLR) – Regulation (EU) 2024/1624 – introduces a single AML/CFT rulebook across the EU to prevent the financial system from being misused for money laundering and terrorist financing.
• Directive on access to centralised bank account registries – Directive (EU) 2024/1654 – amends Directive (EU) 2019/1153 to improve competent authorities’ access to centralised bank account registries and transaction information across the EU.
• The 6th Anti-Money Laundering Directive (AMLD6) – Directive (EU) 2024/1640 – strengthens the EU AML/CFT framework by enhancing national supervisory systems, cooperation between authorities and the role of FIUs, while amending and repealing Directive (EU) 2015/849.

2. Key Circulars for AML/CFT

The Cyprus Securities and Exchange Commission (CySEC) regularly issues Circulars through its official website to communicate regulatory developments, supervisory expectations and guidance to the entities under its supervision.  

Depending on the subject matter, these Circulars may apply to specific categories, such as Cyprus Investment Firms (CIFs), Crypto-Asset Service Providers (CASPs), Alternative Investment Fund Managers (AIFMs) and Management Companies (MCs), or to several categories of regulated entities. 

Below is a selection of Circulars that the SALVUS Regulatory Compliance team considers particularly relevant to the AML/CFT obligations and operations of regulated entities: 

• Circular C733

– Highlights the MOKAS Strategic Analysis Report 2023-2024 and relevant ML/TF trends, typologies, risk indicators and red flags that regulated entities should consider within their AML/CFT frameworks and risk-based approach.

• Circular C781

– Covers the MOKAS Revised STR Guidelines, Strategic Reports and Annual Report 2025, bringing together key updates and information relevant to AML/CFT reporting and recent financial crime developments.

• Circular C723

– Relates to the EBA’s assessment of ML/TF risks affecting the EU financial sector. It highlights areas such as FinTech, RegTech, crypto-assets, fraud, Artificial Intelligence and restrictive measures that regulated entities should consider within their ML/TF risk assessments.

• Circular C762

– Relates to the FATF’s targeted report on illicit finance risks associated with stablecoins and unhosted wallets. It highlights relevant risks and typologies that regulated entities should consider when assessing and monitoring crypto-asset related activity.

• Circulars C685, C697, C724, C737

– These Circulars address key developments relating to sanctions compliance, including sanctions screening systems, the EU Sanctions Helpdesk, the Cyprus legal framework on restrictive measures, and the concepts of ownership and control.

3. 2026 Readiness Actions to #StayAhead

Supervisory expectations are increasingly focused on how effectively AML/CFT controls and governance work in practice, while the EU framework moves towards greater harmonization and more data-driven supervision. Firms should therefore prepare early by identifying gaps, strengthening controls, training staff and improving governance before new requirements take effect.

Some important readiness actions for 2026 include: 

• Know Your Customer and prove it  

Firms should review their onboarding procedures, ensure that beneficial ownership and control are appropriately verified and assess the effectiveness of digital onboarding tools where these are used. Firms should also be able to demonstrate how each client was identified, verified and risk-rated.  

• Monitor smarter and escalate faster  

Transaction monitoring arrangements should reflect current AML typologies and risk indicators, while clear procedures should be maintained for the escalation of suspicious activity. Firms should be able to evidence how alerts are generated, investigated and escalated.  

• Make AML accountability visible  

AML roles, responsibilities, reporting lines and escalation channels should be clearly documented and understood. Oversight should also be evidenced through reports, meeting minutes, action logs and appropriate follow-up.  

• Use technology that can stand up to scrutiny  

Firms should ensure that their AML systems support effective onboarding, sanctions and PEP screening, transaction monitoring, reporting and auditability. Appropriate records of system settings, testing and outputs should also be maintained.  

• Keep records that tell the full story  

Complete and accurate records should be maintained in relation to customer profiles, transactions, customer risk classifications, SDD and EDD decisions, suspicious activity assessments and relevant AML methodologies.  

Final Thoughts 

As regulatory expectations continue to develop, strong internal systems and effective AML/CFT safeguards are becoming increasingly important. Firms that fail to address weaknesses may face regulatory findings, financial crime exposure and reputational risks. 

With supervisors placing greater emphasis on effectiveness in practice, regulated entities should use 2026 to review their frameworks, identify gaps and prepare for upcoming developments. AML/CFT compliance now requires firms not only to have appropriate policies and procedures in place, but also to demonstrate that their controls are implemented, monitored and effective. 

4. How SALVUS can assist you?

The SALVUS Regulatory Compliance Team works closely with regulated entities to develop, review and maintain policies, procedures and compliance frameworks that meet applicable regulatory requirements. Through a practical and tailored approach, SALVUS supports firms in strengthening their internal controls, governance arrangements and day-to-day compliance processes, helping them maintain both regulatory alignment and operational effectiveness. 

In collaboration with the Institute for Professional Excellence (IforPE), SALVUS offers the self-paced CPD course “Know all 2026 Anti-Money Laundering Regulatory Updates“, developed for professionals working in the financial sector. The course covers the key AML regulatory developments for 2026, together with relevant upcoming changes and supervisory expectations. 

Please contact us at compliance@salvusfunds.com if you require support with your AML/CFT compliance obligations or would like to learn more about our IforPE courses. 

#StayAhead

Should you be interested in reading more about AML compliance or the Compliance Function requirements, please visit the selected articles below:   

• A Complete Client Onboarding Procedure as per AML & MiFID in 2026
• An AML Guide in 2026: Assessing Risks, KYC, CDD, Duties & Responsibilities
• Compliance Monitoring Program & Assessment in 2026
• Roadmap to Markets in Crypto-Assets (MiCA) Regulation in 2026

The information provided in this article is for general information purposes only. You should always seek professional advice suitable for your needs.