Regulatory Blog

On 23 June 2025, the Government of the Virgin Islands introduced a policy governing access to the Register of Beneficial Ownership for BVI Business Companies and Limited Partnerships. This initiative aligns with international standards for corporate transparency, anti-money laundering, counter-terrorism financing, and counter-proliferation financing, while safeguarding individual privacy.

On 20 June 2025, the Government of the Virgin Islands published a Proclamation bringing the Proceeds of Criminal Conduct (Amendment) Act, 2025 into force on 6 June 2025. This legislation introduces enhanced measures to combat money laundering, strengthen financial transparency, and facilitate international cooperation.

On 25 April 2025, the Republic of Cyprus published the Network and Information Systems Security (Amendment) Law of 2025. This amending law aligns Cyprus’ national legislation with the EU NIS 2 Directive 2022/2555. The NIS2 framework is viewed as a substantial step towards strengthening cybersecurity across the EU. This new legal framework expands the scope of covered entities and imposes more rigorous obligations regarding cybersecurity risk management and incident reporting.

The European Commission recently took the decision to report Spain, Czechia, Cyprus, Poland, and Portugal to the Court of Justice of the European Union due to lack of local effective transposition of the Digital Services Act.

On 2 June 2025, Cyprus' Ministry of Finance announced the introduction of revised notification templates for outgoing transfers of funds under Article 5r of EU Regulation 833/2014. This measure aims to eliminate inconsistencies in submitted data, streamline validation procedures, and expedite the overall evaluation process to ensure compliance with restrictive measures.

The Central Bank of Cyprus has taken a significant step forward in its commitment to enhancing the integrity of the financial system by adopting a new directive on anti-money laundering and terrorist financing matters. The Directive repeals and replaces the previously applicable AML Directive of the CBC, known as the “fifth edition”.

Up until now, the provision of cross-border banking services provided by third-country (ie non-EU/EEA) undertakings has not been harmonised at an EU level. In effect, each EU Member State has been entirely free to determine its own territorial scope rules for the provision of such cross-border banking services.

On 20 May 2025, the CSSF updated its AIFMD FAQs to clarify the subject of marketing AIFs to retail investors. In principle, non-regulated Luxembourg AIFs not subject to a product law can only be marketed in Luxembourg to professional investors.

The Cyprus Securities and Exchange Commission (CySEC) recently announced updates to the Cyprus Beneficial Ownership Register of Express Trusts and Similar Legal Arrangements (CyTBOR). These changes, aimed at enhancing compliance with the Directive on the Prevention and Suppression of Money Laundering and Terrorist Financing (Register of Beneficial Owners of Express Trusts and Similar Legal Arrangements) (Amending) of 2025.

On 20 May 2025, the UK introduced a sweeping sanctions package aimed at weakening Russia’s military and economic capabilities amid its ongoing war in Ukraine. This move underscores the UK’s commitment to international law and peace.

On 10 April 2025, the House of Representatives of Cyprus (HoR) approved amendments in Cyprus tax legislation focusing on corporation practices in low-tax jurisdictions (LTJs) and EU "blacklisted" jurisdictions (BLJs).

A draft legislative package seeking to overhaul Cyprus’ sanctions framework (the Draft Package) is being debated in the Cypriot Parliament.