In a major legislative update, Cyprus has implemented three new financial laws to enhance its digital payment ecosystem and strengthen its compliance with EU regulations. The reforms align with Regulation (EU) 2024/886 on instant credit transfers in euros and update Cyprus’s anti-money laundering rules to cover cryptocurrency transactions. These changes place Cyprus at the forefront of SEPA compliance, while also boosting trust and efficiency in cross-border digital payments and crypto-related operations.
Mandatory Instant Payments and Beneficiary Verification by 2027
Under the new legal framework, all payment service providers in Cyprus, including non-banking institutions and fintech companies, must offer instant payment services in euros by 2027. Real-time beneficiary verification will also become mandatory before executing any transaction, a critical step in reducing fraud and ensuring transparency.
Non-compliance comes with heavy penalties—either 10% of a company’s annual turnover or up to €5 million. These provisions aim to increase consumer protection, standardise procedures across the EU payments market, and ensure seamless digital transactions for businesses and individuals alike.
Tighter AML Controls on Cryptocurrency Transfers
Simultaneously, Cyprus amended its anti-money laundering legislation to align with Directive (EU) 2015/849 and Regulation (EU) 2023/1113, extending AML obligations to crypto asset service providers (CASPs). The reforms grant greater authority to the Central Bank of Cyprus and CySEC, and require enhanced due diligence in transactions involving cryptocurrency exchanges or cross-border digital assets.
These changes reflect EU-wide priorities for increasing financial transparency, particularly in the fast-growing virtual asset sector.
Eurofast’s Take: Strategic Compliance for Financial Growth
At Eurofast, we support businesses in adapting to the evolving regulatory environment with a full range of services:
- Technical implementation of SEPA-compliant instant payment systems
- Development of automated beneficiary verification solutions
- Tailored advice on cryptocurrency compliance and AML/CFT reporting obligations
- Ongoing updates and training for internal teams on EU financial regulations
With Cyprus fast becoming a hub for fintech innovation and digital banking, early adaptation is not just a legal obligation—it’s a competitive advantage. Our multidisciplinary team ensures clients remain compliant, agile, and prepared for the future of payments and digital finance in the EU.
For further queries, please, contact us at [email protected]
Georgia Stylianou