Study notes · 7 topics · Free

AML Legal and Regulatory Framework: CySEC AML study notes

The authorities, offences, penalties and international bodies behind Cyprus's AML/CFT rules, explained in 7 short notes.

By the ExamPass CY editorial teamLast reviewed About 38 minutes to read all 7

CySEC AML exam

Chapter 3 · about 6 of 40 questions (15%)

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Part of Chapter 7, AML & Terrorist Financing

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Part of Chapter 8, AML & Terrorist Financing

Chapter 8 overview →

What this chapter covers

Cyprus's fight against money laundering rests on Law 188(I)/2007, which sets up the financial intelligence unit MOKAS, names the supervisors that police regulated firms, and creates the criminal offences and penalties that apply to launderers and to professionals who fail in their duties.

That national law sits inside a wider framework: EU directives adopted by the European Parliament and the Council, the global standards of the Financial Action Task Force, evaluations by the Council of Europe's MONEYVAL, and separate laws on terrorism and sanctions, the latter reformed in July 2025.

Read the notes in order the first time. The first two cover the authorities in Cyprus, the next two the offences, then the international bodies, and finally the terrorism and sanctions laws.

The 7 topics

Each note starts with a short answer and a table of the facts to remember.

The numbers to know

Every figure in this chapter, with the note that explains it.

FigureWhat it isNote
7 business days, 30 in totalLongest a MOKAS instruction to suspend a transaction can last, including renewalsTopic 1: What is MOKAS and what powers does it have?
€1,000,000Standard maximum administrative fine for an AML breachTopic 2: Who supervises firms for AML in Cyprus, and what fines can CySEC impose?
€1,000 a dayMaximum fine for each day a breach continuesTopic 2: Who supervises firms for AML in Cyprus, and what fines can CySEC impose?
€5,000,000 or 10% of turnoverMaximum fine for a credit or financial institution that is a legal person, including investment firms, funds and crypto-asset service providersTopic 2: Who supervises firms for AML in Cyprus, and what fines can CySEC impose?
2 years and/or €5,000Penalty for failing to report knowledge or reasonable suspicion to MOKASTopic 4: What are the offences of failing to report and tipping off?
2 years and/or €50,000Penalty for tipping offTopic 4: What are the offences of failing to report and tipping off?
2 years and/or €100,000Penalty for giving a firm false identity information or forged documentsTopic 3: What are the money laundering offences under the AML/CFT Law, and what defences exist?
3 a yearFATF Plenary meetingsTopic 5: How do the EU AML directives and the FATF shape Cyprus's AML rules?