Notably, the country has upgraded its rating for Recommendation 13 (correspondent banking) to "Largely Compliant" following amendments to its AML/CFT Law which now applies uniform due diligence requirements to all cross-border correspondent relationships, regardless of jurisdiction. Financial Institutions must assess the respondent institution’s business activities, reputation, and supervision quality for all respondents.

However, the country’s rating to Recommendation 8 (Non-Profit Organisations) remains "Partially Compliant" due to moderate deficiencies, including gaps in risk assessments and regulatory measures.

The report also provides a comprehensive analysis of Cyprus' compliance with FATF's 40 recommendations. Currently, the country is rated as compliant or largely compliant on 38 recommendations, with none assessed as non-compliant. Key areas of improvement include enhanced due diligence measures, risk-based monitoring, and legislative amendments to address vulnerabilities in correspondent banking.

Looking ahead, Cyprus’ 6th round mutual evaluation will occur in October2028. Importantly, Cyprus will no longer be subject to the fifth-round follow-up process.

The press release can be found here and the 4th Enhanced Follow-up Report here.