The legislation governing Cyprus’ financial services sector underpins the island’s ambition to become a leading international financial centre. As a former British colony, Cyprus law is based on English Common Law and was later amended to meet European Union requirements. Offering foreign businesses a familiar and reliable framework within which to operate, the island’s legal and regulatory system is considered to be one of the most favourable in Europe, whilst at the same time being fully compliant with the EU, the Financial Action Task Force on Money Laundering (FATF), the Organization for Economic Co-operation and Development (OECD) and the Financial Stability Forum. 

Regulators and Authorities 

Financial institutions are regulated and supervised by three authorities in Cyprus: the Central Bank of Cyprus (CBC), which is responsible for the supervision of commercial banks and the cooperative credit institutions; the Superintendent for Insurance Control (SI); and the Cyprus Securities and Exchange Commission (CySEC). However, changes introduced by the EU’s Single Supervisory Mechanism (SSM) in 2014, saw the transfer of supervision of all the eurozone’s largest banks to the European Central Bank (ECB). 

Anti-Money Laundering 

Cyprus has put in place all necessary mechanisms for the prevention and suppression of money laundering and terrorist financing activities. Cypriot authorities cooperate with foreign supervisory authorities in compliance with the Financial Action Task Force (FATF) recommendations to ensure financial sector legislation and practices are aligned with international standards. The national AML law is fully aligned with the 4th EU Anti- Money Laundering Directive, and Cyprus is in full adherence with sanctions issued by the European Union, the United Nations, and also the US Treasury OFAC. 

The 6th Anti-Money Laundering Directive (6AMLD), adopted in 2024 as part of a new EU AML package, strengthens regulations against financial crime in Europe. It standardizes 22 predicate offenses across the EU, expands liability to include aiding/abetting/attempting money laundering, and boosts cross-border cooperation. The directive works alongside new AML regulations (AMLR) and a central AML Authority (AMLA) to increase accountability.

The Cyprus Ultimate Beneficial Owner (UBO) registry is a mandatory, electronic database maintained by the Registrar of Companies, requiring entities to disclose natural persons holding over 25% ownership or control, in line with EU AML Directives.

For trusts, the UBO register is maintained by the Cyprus Securities and Exchange Commission (CySEC).

All rights reserved. The material on this site may not be reproduced, distributed, transmitted, cached, or otherwise used, except with the prior written permission of CountryProfiler.

December 2025