Here is a summary of the key updates introduced:

• Introduction of identification document definition: The Directive now includes a clear definition of the term “identification document”.
• Updated internal suspicion report template: The Directive now includes an updated internal suspicion report template, which must be filled in by employees of obliged entities reporting suspicious activities/transactions to their AML compliance officers.
• Electronic verification: The use of electronic methods for remote identification and verification of client identities is acknowledged as permissible, in application of a risk-based approach. Obliged entities must inform CySEC of the electronic methods they intend to use for this purpose in advance.
• Updated guidance on suspicious transaction/activity examples, enhanced due diligence and customer identification issues: The amendments include updated requirements for client documentation, including proof of address, and the use of certified true copies of identification documents for clients outside Cyprus. The updates also ensure alignment with client due diligence requirements with respect to economic sanctions imposed by the United Nations and the European Union.
• Effective dates: While most changes take effect immediately upon publication and are therefore already effective, the provisions relating to electronic verification will take effect as from 1 December 2024.

These amendments reflect Cyprus' ongoing commitment to strengthen its anti-money laundering framework in alignment with international standards. Financial institutions and other obligated entities in Cyprus should familiarise themselves with these changes to ensure compliance and enhance their internal AML procedures.

The Directive published to the official Gazette can be found here.