The Amending Law focuses on AML compliance matters for crypto-asset service providers (CASPs), in particular what is known as the “travel rule”.

Key updates include:

• Alignment with EU Directives: The Amending Law harmonises local AML legislation with EU Directive 2015/849 (the EU AML Directive) as amended by EU Regulation 2023/1113 (the Transfer of Funds Regulation) and relevant recommendations issued by the Financial Action Task Force (FATF).
• Definitions update: CASPs are now included in the definition of a “financial institution”.
• Territorial scope provisions: Limited guidance is provided on when obligations under local AML Laws arise for non-EU CASPs servicing clients based in Cyprus.
• Risk mitigation measures: Introduces stricter due diligence requirements for crypto-asset transactions, including identifying parties involved in transfers to/from self-hosted wallets and applying enhanced due diligence measures.
• Duty to perform CDD on correspondents: Cypriot CASPs must consider whether correspondent CASPs are licensed for their services and apply enhanced due diligence to their end-users.
• Supervisory authority powers: Expands the authority of supervisory bodies to impose sanctions for non-compliance with the Transfer of Funds Regulation.
• Central contact points: Mandates the appointment of central contact points for CASPs which are established in Cyprus but do not maintain a branch.

These amendments strengthen the legal framework, ensuring effective implementation and compliance with international anti-money laundering and counter-terrorism financing standards.

The Amending Law (only in Greek) can be found here