AMLA Supervision and Remote Onboarding: Strengthening AML Compliance in Cyprus Firms
Table of Contents
Introduction
Category: AML & Compliance
In 2025, a new era of AML Compliance is prevailing in the European Union. Having been newly created, the Anti-Money Laundering Authority (AMLA) is in itself a step towards harmonized supervision across all the Member States. On the one hand, there is supervision by AMLA; on the other, the existing commitments from CySEC, CBC, ICPAC, and CBA pursue another element of transformation of how Cyprus firms must finally end up working with compliance.
Remote onboarding is one area currently under enhanced scrutiny: to verify customers digitally rather of face to face. This method, having gained momentum during the pandemic and with the parallel rise of digital finance, offers efficiency with a new set of risks: fraudulent documents, synthetic identities, crypto-vulnerabilities.
For CIFs, CASPs, lawyers, and accountants, the dual challenge presents itself plainly: keeping in line with AMLA’s supervisory expectations while ensuring the remote onboarding processes are at least meeting KYC and CDD standards.
This article explains the EU regulatory background, how Cyprus firms are affected, the challenges they face, and why Centre 8’s AML training is vital to navigating this new compliance landscape.
Regulatory Context
The EU AMLA Framework
The Anti-Money Laundering Authority (AMLA) was established under the EU AML Package (2024/1624) to directly supervise high-risk financial institutions and coordinate cross-border enforcement. AMLA’s objectives include:
- Direct supervision of selected high-risk entities across the EU, especially with regard to entities engaging in some sort of cross-border activity.
- Harmonize AML/CFT supervision within Member States so as to remove fragmentation.
- Guidance for or technical standards on remote onboarding, digital identity verification, and RegTech use.
- Coordinate enforcement with national supervisors such as CySEC and CBC.
Thus, AMLA's presence would assure that in Cyprus, local regulator decisions will be held shaking against EU standards. Thus, entities further highly dependent on cross-border businesses (investment, funds, fintech, and crypto services) will be under AMLA's watch.
Cyprus Implementation
The Cyprus Prevention and Suppression of Money Laundering and Terrorist Financing Law (2007–2019) sets out the anti-money laundering laws in Cyprus and is enforced by:
- CySEC – monitors CIFs, CASPs, and collective investment schemes.
- Central Bank of Cyprus (CBC) – exercises supervision over credit institutions and payment institutions.
- ICPAC – assesses AML compliance among accountants and auditors.
- Cyprus Bar Association (CBA) – assesses AML compliance among lawyers.
- MOKAS (Unit for Combating Money Laundering) – receives and investigates Suspicious Transaction Reports (STRs).
Recent CySEC circulars state that remote onboarding is allowed provided that the firms adopt robust digital identity verification methods, policies for sanctions/PEPs screening, and an audit trail.
Now, with AMLA setting pan-European standards, Cyprus firms will have to see that their remote onboarding frameworks are future-proofed—not only with CySEC, but indeed with EU-level supervisory expectations.
Industry Challenges for Cyprus Firms
In an AMLA environment, Cypriot professionals face a host of pressing compliance challenges:
1. Remote Onboarding Risks
- Fraudulent IDs, credentials stolen from a legitimate user, and synthetic identities are difficult to identify without a face-to-face verification.
- Without advanced RegTech solutions to digitally authenticate documents, smaller firms become easy targets, since they do not possess the required technology.
2. Regulatory Overlap
- Firms find themselves dealing with overlapping CySEC directives, AMLA standards, FATF recommendations, and MONEYVAL evaluations at the same time.
- This labyrinth-like framework multiplies administrative work and heightens risk.
3. Resource Constraints
- Big banks may purchase biometric-based e-KYC platforms and AI-based fraud detection systems. Small CIFs, law firms, and accounting practices may seriously not have these resources.
4. Supervisory Expectations
- The direct inspections ushered in by AMLA will require uniform quality of remote onboarding, uniting not just basic KYC measures but enhanced due diligence applied practically across all high-risk clients.
- Firms stand to be reputationally damaged if an identified deficiency in their practices is publicised by AMLA, especially against the backdrop of increased EU focus on Cyprus post-MONEYVAL reviews.
How Centre 8 Helps: Our AMLA and Remote Onboarding Seminar provides a structured CPD training explaining new EU expectations, integrating CySEC requirements, and thus equipping professionals for the necessary remote onboarding procedures.
Practical Approach to Remote Onboarding Training
Real Supervisory Cases
The Cyprus Securities and Exchange Commission (CySEC) has issued administrative penalties against CIFs for deficiencies regarding beneficial ownership and source of funds in relation to digital onboarding. These cases underline the importance of verifying documents, periodic reviews of document verifications, and EDD to high-risk customers.
What Firms Ought to Do
1. Digital Identity Verification
Incorporate technologies such as video KYC, biometric scans, and e-signature validation.
2. Risk-Based Approach (RBA)
Increase the level of monitoring on clients from higher-risk jurisdictions or clients using crypto-assets.
3. Audit Trails & Record-Keeping
Ensure that every digital step taken during the onboarding process is recorded and is searchable, according to inspection standards set by CySEC and AMLA.
4. Sanctions & PEP Screening
Automate screening of sanction lists of EU, UN, and OFAC.
5. Ongoing Monitoring
Remote onboarding shall never be carried out as a one-off process. The firms must always conduct ongoing risk-assessment of their client profiles, especially in cases of digital wallets, cross-border payments, or crypto.
Training Benefits for Cyprus Professionals
- Stay ahead of AMLA supervision: Understand the translation of EU-level expectations into direct implications for Cyprus firms.
- Future-proof compliance frameworks: Build onboarding procedures that satisfy the requirements laid down by CySEC and AMLA inspectors.
- Meeting CPD requirements: Accredited training also counts towards mandatory annual CPD hours for AMLCOs.
- Practical application: Trainers will provide case studies, sample policies, and step-by-step guidance on the application of remote onboarding process.
- Exam readiness: For AMLCOs studying for the CySEC AML certification or renewal, this seminar will refresh their knowledge base.
Conclusion
AMLA supervision means a paradigm shift in compliance monitoring across the continent. For the purpose of firms in Cyprus, this surely means the two-fold responsibility of observing national regulators and preparing for direct EU supervision.
What was once a convenience in customer onboarding now—must be called compliance—requires state-of-the-art digital evidence, a robust risk-based approach framework, and personnel fully up to speed on emerging standards.
Centre 8's AMLA Supervise: Remote Onboarding Seminar covers those gaps by offering:
- Anti-money laundering training aligned with EU standards and with Cyprus interpretation.
- Practical frameworks on how to digitize secure onboarding.
- CPD accredited hours for AMLCOs, lawyers, accountants, and risk managers.
- A glimpse of AMLA's next inspection topics and CySEC enforcement priorities.
Secure your compliance future today. Register for the Centre 8 AMLA & Remote Onboarding Seminar to ensure your firm is ready for both CySEC and AMLA supervision.
References
- EU AML Regulation (2024/1624) establishing AMLA – eur-lex.europa.eu
- CySEC AML & remote onboarding circulars – cysec.gov.cy
- ICPAC AML Directive – icpac.org.cy
- CBC AML rules for banking institutions – centralbank.cy
- FATF Recommendations – fatf-gafi.org
- MONEYVAL 2023 evaluation on Cyprus – moneyval.coe.int