As financial systems grow increasingly interconnected, the risks of money laundering (ML) and terrorist financing (TF) continue to evolve. Organizations across the globe are tasked with staying ahead of these threats by implementing robust Anti-Money Laundering (AML) measures. In 2026, the AML landscape is shaped by heightened regulatory expectations, emerging technologies, and new threats, making it critical for professionals to possess a comprehensive understanding of the framework.
Effective AML compliance hinges on a strong
foundation built upon risk assessment, KYC procedures, and robust CDD
practices. By identifying potential vulnerabilities within business operations,
organizations can prioritize resources and tailor controls to mitigate risks.
KYC and CDD processes are indispensable tools, enabling institutions to verify
client identities, understand their financial behavior, and detect suspicious
activities. AML compliance is a collective effort
requiring collaboration across all organizational levels. From the Board of
Directors to compliance officers and frontline employees, each individual plays
a vital role in creating a secure and compliant environment.
With this blog post, Despoina Charalampous, an instructor at the institute, provides learners with in-depth education on the AML regulatory framework and AML compliance culture. She also expands on the AML Duties, Responsibilities, Risks, KYC, and CDD. Further, a comprehensive online course is offered through the IforPE platform, titled “An AML Guide in 2026: Assessing Risks, KYC, CDD, Duties & Responsibilities”.
Towards the end of this blog post, you will
find detailed information about the valuable skills and competencies acquired
upon course completion and how they contribute to ensuring the complete
understanding of the AML regulation.
The AML Regulatory Framework
The AML regulatory framework constitutes a cornerstone of the financial regulation, designed to combat ML and TF across jurisdictions. In the European Union, the framework is governed by a series of directives, including the 4AMLD, 5AMLD and 6AMLD. These directives aim to harmonize AML measures across member states, ensuring a robust and consistent approach. In Cyprus, these directives are transposed into national law, such as The Prevention and Suppression of Money Laundering Activities Law of 2007, accompanied by amendments such as the obligations for Crypto Asset Service Providers (CASP) under Law 98(I)/2023. These laws establish strict requirements for obliged entities, enhancing transparency and accountability in financial activities.
In Cyprus, the AML framework is supported by several supervisory authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Central Bank of Cyprus (CBC), and the Unit for Combating Money Laundering (MOKAS). CySEC oversees compliance for entities such as investment firms, fund managers, and Crypto-Asset Service Providers (CASP), utilizing a risk-based approach to supervision. It issues directives, monitors compliance, and evaluates risks linked to money laundering and terrorist financing within the financial system. MOKAS, as the designated Financial Intelligence Unit (FIU), plays a pivotal role in investigating suspicious transaction reports (STR) and cooperating with international counterparts to ensure effective enforcement of AML regulations.
The Sixth AML Directive (6AMLD) marks another important step in the EU’s efforts to build a stronger, more transparent, and more coordinated AML/CFT framework. By repealing 4AMLD and 5AMLD and further improving the framework introduced under Directive (EU) 2018/843, it responds to emerging risks while placing greater focus on national and supranational risk assessments, UBO register access and interconnection, FIU cooperation, supervisory responsibilities, administrative sanctions, whistleblower protection, and stronger cooperation between competent authorities across the EU.
AML Compliance Culture
An effective AML compliance culture is essential for organizations to maintain integrity, trust, and adherence to regulatory standards. It begins with a clear commitment from the Board of Directors (BoD) and senior management, who must prioritize AML measures as part of the organization's core values. This culture establishes a strong defence against money laundering and terrorist financing by promoting awareness, accountability, and vigilance at all organizational levels. When employees understand their roles within the AML framework, it reduces the likelihood of non-compliance and enhances the organization's overall risk management strategy.
A robust AML compliance culture requires well-defined roles, policies, and procedures that are effectively communicated and consistently enforced. Key elements include appointing an AML Compliance Officer (AMLCO) to oversee daily AML operations, implementing risk-based internal controls, and ensuring regular reporting to the BoD. Organizations must also design ongoing training programs tailored to employees' responsibilities, ensuring they are knowledgeable about AML regulations, reporting obligations, and how to identify and respond to suspicious activities. Furthermore, independent audits and internal evaluations are crucial to monitor the effectiveness of AML measures and address any deficiencies proactively.
The course is designed by
SALVUS Funds and delivered by their Associate,
Despoina Charalampous. This program is developed for professionals entrusted with AML duties and responsibilities, as well as professionals working at Cyprus Investment Firms, CASP, Electronic Money Institutions (EMI), and other regulated entities dealing with ML/TF threats.
Professionals undertaking this course will acquire significant knowledge on the AML duties, responsibilities, risks and concepts such as KYC and CDD.
- Money Laundering - Terrorist Financing
- What is Money Laundering?
- Stages of Money Laundering
- Methods of Money Laundering
- What is Terrorist Financing
- Differences between ML&TF
- Similarities between ML&TF
- ML&TF risks emanating from crypto assets
- Money Laundering Offence
- The AML Regulatory Framework
- Supervisory Authorities
- Powers of the Supervisory Authority
- AML Regulatory Framework
- MOKAS' powers
- Compliance Culture, Duties and Responsibilities
- Compliance Culture
- Stakeholders
- Board of Directors Responsibilities
- Client Acceptance Policy
- Levels of Control Functions
- Education and Training
- Assessing and Managing Risks - Risk Based Approach & Risk Scoring
- Risk Based Approach
- Primary Risk Factors and associated risks
- Assessing and managing ML/TF risks
- Weighting risk factors
- Financial inclusion and de-risking
- MOKAS Strategic Report 2023-2024
- MOKAS Strategic Report 2025
- Customer Due Diligence & KYC, KYT, KYW
- Customer Due Diligence
- Evidence of Identity
- Simplified and Enhanced Customer Due Diligence
- Documentation
- Record Keeping
- Reliance on Third Parties
- Transaction Monitoring and Practical Examples
- Wallet Identification
- CySEC Circular C685 and PS-01-2024
- CySEC Circular C685
- Screening System Expectations
- Testing Methodologies
- Types of Screening System Testing
- Use of Remote Onboarding Solutions
- CySEC's Final Approach on Digital onboarding
- Circular 723 - EBA’s Opinion on ML & TF risks affecting the EU financial sector
- The European Banking Authority (EBA)
- Purpose and scope
- Cross-sectoral risks
- AML/CFT trends and weaknesses
- Key message from the EBA After completing the course, participants can assess their understanding of the material through a set of knowledge-based questions.
Additionally, this course contributes 5 CPD hours to the annual Continuous Professional Development (CPD) requirements for professionals, including those with CySEC Advanced, Basic and AML certifications.
