CySEC Steps Up AML Consultations As EU Rules Tighten

by THEFUTURE.TEAM

February 17, 2026

Regulatory Shift In Focus

The Cyprus Securities and Exchange Commission (CySEC) has issued a new circular informing regulated entities about recently launched public consultations by the Anti-Money Laundering Authority (AMLA). The notice applies to a wide range of market participants, including Cyprus investment firms, administrative service providers, UCITS management companies, alternative investment fund managers and crypto-asset service providers, highlighting a notable shift in the supervisory landscape.

Consultations On Draft Regulatory Technical Standards

AMLA has opened public consultations on draft Regulatory Technical Standards prepared under the European Union’s updated anti-money-laundering framework. The proposals focus on several core areas:

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Business relationships: Draft standards under Article 19(9) set out criteria for establishing and maintaining business relationships, including rules for occasional and linked transactions and the introduction of lower reporting thresholds.
Customer due diligence: Under Article 28(1), the standards provide detailed guidance on customer identification and verification procedures, aiming to strengthen transparency during client onboarding.
Pecuniary sanctions and enforcement: Draft provisions under Article 53(10) address the handling of breaches, administrative penalties, and periodic penalty payments, reinforcing the enforcement architecture introduced by AMLD6.

Timelines And Participation

Clear deadlines have been set for stakeholder feedback. Comments on proposals concerning business relationships and customer due diligence are due by 8 May 2026, while responses related to enforcement measures must be submitted by 9 March 2026. An online public hearing dedicated to business relationships and due-diligence requirements is scheduled for 24 March 2026, with additional logistical details to be announced by AMLA.

Broad Implications And Strategic Developments

AMLA is encouraging participation from both financial and non-financial stakeholders, marking a more inclusive approach than earlier consultations led by European supervisory bodies. The authority stresses that early engagement will be particularly important for refining verification procedures, adjusting transaction-monitoring thresholds and ensuring smooth alignment with the evolving EU enforcement regime.

A Forward-Looking Governance Framework

In parallel, AMLA has unveiled its first multi-year strategic plan for 2026–2028, outlining the transition from a start-up phase to full operational capacity. The roadmap includes completion of the EU Single Rulebook, stronger supervisory convergence among member states, deeper cooperation between Financial Intelligence Units and a significant expansion of internal capacity, with staffing expected to grow from about 120 employees in late 2025 to more than 430 by the end of 2027

Conclusion

CySEC’s circular, together with AMLA’s strategic direction, points to a comprehensive strengthening of the EU anti-money-laundering framework. For Cyprus-based regulated entities, participation in these consultations represents both a compliance responsibility and a practical opportunity to help shape the standards that will guide future operational and reporting practices across the financial sector.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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