The Anti-Money Laundering framework in Europe is entering a new phase, requiring professionals across the financial sector to address risks that go beyond traditional fiat transactions. Institutions are now expected to implement AML controls for digital and crypto assets with the same rigour applied to conventional financial products. This shift reflects the growing importance of emerging technologies, tokenised value transfers, and decentralised platforms, all of which present new challenges for AML compliance teams. At the same time, developments at the European level, including the introduction of the MiCA regulation and the establishment of the Anti-Money Laundering Authority, have raised expectations and brought greater consistency across member states.
Institutions operating in Cyprus are directly affected by this expansion. Entities supervised by CySEC, the Central Bank of Cyprus, the Institute of Certified Public Accountants of Cyprus, and the Cyprus Bar Association must now enhance their AML frameworks to address the evolving nature of financial crime. As the scope of services expands to include crypto wallets, decentralised exchanges, cross-border transfers, and complex digital onboarding channels, it becomes essential for AML professionals to stay informed and confident in applying new rules and controls.
In this blog post,
Loukia Matsia, the Regulatory Compliance Manager at
SALVUS Funds and instructor of this specialised training, outlines how AML compliance obligations are developing in 2026 for a wide range of financial institutions. These developments are not limited to traditional banks and investment firms. They now equally apply to Crypto Asset Service Providers, Electronic Money Institutions, and Payment Institutions, all of which must manage AML risks associated with digital and crypto asset flows. Additionally, a comprehensive online self-study course is offered through the IforPE platform, titled “
Understand AML Requirements in 2026: Fiat, Digital Assets & Crypto Assets’’
Why this matters in 2026
AML obligations in 2026 reflect a broader effort to secure the financial system against illicit activity that exploits technological innovation. With financial crime threats now extending to blockchain transactions, anonymous wallets, tokenised instruments, and non-traditional delivery channels, compliance officers must be prepared to manage risk across new dimensions. National supervisors and EU-level authorities are reinforcing this shift, requiring regulated entities to treat digital and crypto services with the same seriousness as fiat-based products. Institutions that fail to integrate these developments into their compliance frameworks risk falling short of both legal and supervisory expectations.
Aligning with the Cyprus National Risk Assessment
The Cyprus National Risk Assessment is a central point of reference for understanding the AML threats and vulnerabilities faced by the financial sector. The course explains how the 2018 and 2021 assessments categorised each sector’s exposure to money laundering and terrorist financing risks. Special attention is given to the treatment of Crypto Asset Service Providers, which were explicitly included in the 2021 assessment and ranked as high-risk due to their exposure to anonymous and cross-border activity. Professionals are shown how to incorporate the findings of the National Risk Assessment into their internal procedures and how to justify the application of simplified, standard, or enhanced due diligence using national risk insights.
AML obligations for fiat, digital and crypto assets
The course introduces the differences between fiat currency, digital assets, and crypto assets. These distinctions are essential for understanding how AML obligations apply in practice. Fiat currency remains the base of most regulated activity, but the inclusion of digital and crypto assets brings new features such as decentralisation, volatility, and pseudonymity. The course provides clear definitions of each asset class and explains how different characteristics can influence customer due diligence, transaction monitoring, and internal risk scoring. Understanding these differences is essential for tailoring AML controls to the specific risks presented by each asset type.
Applying the risk-based approach
The course provides practical guidance on how to apply the risk-based approach in financial institutions. Participants are shown how to evaluate customer profiles, delivery channels, geographic exposure, and product-specific features to develop a meaningful risk score. This score determines the level of due diligence to be applied and forms the basis for monitoring expectations. Institutions are reminded that a documented and justifiable approach to risk classification is essential for satisfying supervisory authorities and for applying AML measures that are proportional to the risks encountered.
Customer due diligence and AML monitoring
With the growth of digital and crypto assets, AML professionals must apply customer due diligence procedures that go beyond identity verification. The course introduces the concepts of Know Your Customer, Know Your Transaction, and Know Your Wallet. Participants are guided through the process of collecting and verifying customer data, monitoring transactional behaviour, and assessing wallet ownership and transaction history. The training shows how these elements work together to detect high-risk activity, identify red flags, and respond to unusual patterns of behaviour.
Reporting suspicious transactions
The final section of the course addresses the process of reporting suspicious transactions. Participants are taught how to identify activity that may give rise to suspicion, how to escalate concerns internally, and how to prepare a report to MOKAS through the GoAML platform. The distinction between internal suspicion reports and formal suspicious transaction reports is explained, along with the obligations of the AML Compliance Officer in managing this process. The course includes real-world examples of red flags and typologies involving both fiat and crypto activity, helping professionals build confidence in meeting this critical regulatory obligation.
What is the “Understand AML Requirements in 2026: Fiat, Digital Assets & Crypto Assets” course and what does it include? The course is delivered by
Loukia Matsia, Regulatory Compliance Manager at
SALVUS Funds. The course is about understanding Digital and Crypto Assets from an Anti-Money Laundering (AML) perspective. It introduces learners to the specifics of digital and crypto assets, explains how they compare to fiat currencies, and explores how these assets are treated under the AML framework.
The course also covers existing and upcoming regulatory provisions and provides practical examples on customer monitoring, transaction monitoring, and how to identify and report suspicious transactions. It is designed for professionals working in CIFs, CASPs, and other CySEC-regulated entities, as well as auditors and lawyers dealing with AML matters.
The Syllabus of the course includes:
- Fiat Currency, Digital Assets and Crypto Assets
- What is a Fiat Currency?
- What is a Digital Asset?
- What is a Crypto Asset?
- Crypto-assets as Financial Instruments
- Fiat vs. Crypto
- What is a Crypto Asset Service Provider?- 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- The AML Regulatory Framework
- Supervisory Authorities
- Powers of the supervisory authority
- AML Regulatory Framework
- Regulation (EU) 2024/1624
- EU AML Authority (AMLA)
- Markets in Crypto-Assets Regulation (MiCA) - Cyprus National Risk Assessments of 2018 & 2021
- Cyprus National Risk Assessment 2018
- Cyprus National Risk Assessment 2021- Assessing and Managing Risks – Risk Based Approach & Risk Scoring
- Risk Based Approach
- Primary risk factors and associated risks
- Customer Economic Profile
- Assessing and managing ML/TF risks
- Information to be collected
- Weighting risk factors
- Practical Examples- Customer Due Diligence & KYC, KYT, KYW
- Customer Identification and Due Diligence procedures
- Simplified Customer Due Diligence (SDD)
- Enhanced Customer Due Diligence(EDD)
- Documentation
- Ongoing Monitoring
- Transaction Monitoring
- Wallet Identification
- Practical Examples - Suspicious Transaction Reports
- Suspicious Transactions
- Red Flag Indicators
- Suspicious Transaction Reporting
The course is delivered through online video recordings and downloadable PDF study material, allowing professionals to learn whenever and wherever it suits them best. Participants can progress at their own pace, revisit topics as needed and reinforce their knowledge through accessible and structured learning resources.
Upon successful completion, participants receive a certificate awarding 5 CPD hours, recognised by CySEC, the Central Bank of Cyprus, and other professional supervisory bodies. The course contributes towards the annual CPD requirements of CySEC Advanced, Basic and AML Certification holders, as well as professionals registered with ICPAC and the Cyprus Bar Association.
