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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 40 minutes to read all 7

CySEC AML exam

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

Chapter 3 overview →

CySEC Advanced exam

Part of Chapter 7, AML & Terrorist Financing

Chapter 7 overview →

CySEC Basic exam

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.

Authorities in Cyprus

  1. What is MOKAS and what powers does it have?Cyprus's financial intelligence unit: who staffs it, what it does with reports and how long it can stop a transaction.7 business days30 in total
  2. Who supervises firms for AML in Cyprus, and what fines can CySEC impose?Which authority supervises which firms, and the measures and fines for AML breaches.€1,000,000€1,000 a day€5,000,000 or 10%

Offences and penalties

  1. What are the money laundering offences under the AML/CFT Law, and what defences exist?The two penalty tiers, protection for people who report, legal privilege and false identity information.14 years€500,000€100,000
  2. What are the offences of failing to report and tipping off?When silence towards MOKAS is a crime, what counts as tipping off, and when sharing is allowed.€5,000€50,000

The international framework

  1. How do the EU AML directives and the FATF shape Cyprus's AML rules?Why the EU legislates, the 2024 package, and how the FATF and its 40 Recommendations work.198940 Recommendations
  2. How are high-risk third countries identified, and what is MONEYVAL?How the EU lists high-risk countries, and the Council of Europe body that evaluates Cyprus.1 month1997

Terrorism and sanctions laws

  1. What do Cyprus's terrorism and sanctions laws provide, and what are the penalties?The terrorist offence and related offences, company liability, and the sanctions laws since July 2025.Life imprisonment€300,000

The numbers to know

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

7 business days, 30 in totalLongest a MOKAS instruction to suspend a transaction can last, including renewalsExplained in Topic 1: What is MOKAS and what powers does it have?
€1,000,000Standard maximum administrative fine for an AML breachExplained in Topic 2: Who supervises firms for AML in Cyprus, and what fines can CySEC impose?
€1,000 a dayMaximum fine for each day a breach continuesExplained in Topic 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 providersExplained in Topic 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 MOKASExplained in Topic 4: What are the offences of failing to report and tipping off?
2 years and/or €50,000Penalty for tipping offExplained in Topic 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 documentsExplained in Topic 3: What are the money laundering offences under the AML/CFT Law, and what defences exist?
3 a yearFATF Plenary meetingsExplained in Topic 5: How do the EU AML directives and the FATF shape Cyprus's AML rules?

How these notes are written

In our own words, from the law and official sources, with a review date on every note. No exam questions or answers are published here.

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